Basel Committee warns of restrictive crypto rules

The global financial industry has urged regulators all over the world to avoid imposing strict capital rules on digital assets.
Warning is gaining momentum because such regulatory requirements are most probable to drive activity underground and, therefore deprive banks of the benefits of crypto technology.
Trade groups as well as representatives of asset managers, blockchain industry and banks told the Basel Committee on Banking Supervision that the authorities’ measures make it too expensive for banks to participate in the rapidly growing crypto industry and related technologies.
The groups said the proposals to cover the USD 2tn crypto industry were so overly conventional and simplistic that they, in effect, would hinder bank involvement in markets specialized in crypto assets.