Wednesday, February 28

Banking Regulators Want Tough Capital Rules for Bitcoin

Banks must set aside enough money to cover a total loss on all bitcoins and other cryptocurrencies they hold.

 

That is the proposal of the Basel Committee on Banking Supervision, a committee of supervisors worldwide. It is a step that could prevent the large-scale use of digital currencies by banks.

According to the committee, the growth in the use of cryptocurrencies could pose a threat to global financial stability if capital requirements are not introduced.

In addition, the regulators point to the hefty price fluctuations of, among other things, bitcoin. They also see fraud, cyber attacks, money laundering and terrorist financing as potential dangers.

Bitcoin and all other cryptocurrencies are collectively worth more than $1600 billion, according to CoinMarketCap. That website monitors various platforms on which cryptocurrencies are traded.

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