Banking Heavyweights Oppose Basel’s Proposed Rules on Crypto Capital Requirements
Banks including JPMorgan Chase and Deutsche Bank oppose “overly conservative” proposals they say would prevent banks from getting involved in crypto asset markets.
Sep 21, 2021 at 2:58 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/ANZOLY7LG5HXZE6P2ZZM3LXCN4.jpg)
Bank for International Settlements. Basel, Switzerland.
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A forum of some of the largest U.S. and European banks has urged modifications to the rules proposed by the world’s central banks and regulators for capital requirements on bitcoin exposure.
- The Global Financial Markets Association (GFMA), made up of such institutions as JPMorgan Chase and Deutsche Bank as well as several other industry associations, in a Sept. 20 letter opposed the rules set out in June by the Basel Committee on Banking Supervision, The Wall Street Journal reported Tuesday.
- The Basel Committee, which is a group within the Bank for International Settlements made up of global regulators and central bankers, suggested that banks with bitcoin exposure should set aside capital to cover losses in full.
- The GFMA said that such a weighting was unnecessary.
- “We find the proposals in the consultation to be so overly conservative and simplistic that they, in effect, would preclude bank involvement in crypto asset markets,” the GFMA wrote in the letter to the Committee.
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Jamie Crawley is a CoinDesk news reporter based in London.
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