A number of leading banks in Europe and the United States have opposed a set of very strict regulations of cryptocurrency. The new rules thus came under sharp criticism from large financial institutions.
Strict regulations of cryptocurrencies
The rules proposed in June this year by a group of central bankers and regulators known as the Basel Committee on Banking Supervision (BCBS) have come into controversy with several of the world’s leading banks.
JPMorgan or Deutsche Bank, for example, is one of the financial institutions that opposes the new rules, which would require them to set aside a dollar of capital for every dollar BTC they own.
The Global Financial Markets Association released an interesting report this week. The report states that cryptocurrencies such as BTC should not face very strict capital requirements. Banking regulators cited money laundering and terrorist financing as their reasons.
Banks and financial institutions argue that the new rules would prevent them from holding cryptocurrencies that would supply activity to unregulated markets. Financial institutions that oppose the rules have also objected to the inclusion and regulation of stablecoins.
Stablecoins have come under increasing control in recent months as combined market capitalization has exceeded $ 100 billion. The US Treasury Department has already taken the first steps against stablecoins.
Conclusion
The requirements for the stricy regulations of cryptocurrencies are increasing in the world. Many financial experts are also calling for regulations, saying that without regulations, cryptocurrencies would not last long. What do you think about regulations? Can governments really kill a crypto? You can read the BCBS rules under the attached link HERE.
The White House wants to head the OCC’s well-known cryptocurrency critic
