
Wenmerge🦇🔊|Apr 20, 2025 06:47
Just a reminder of the BASEL Committee's recommendations only in 2022.
"For each separate Group 2b cryptoasset to which they are exposed, banks must apply a risk weight of 1250% to the greater of the absolute value of the aggregate long positions and the absolute value of the aggregate short positions in the cryptoasset."
"A bank's total exposure to Group 2 cryptoassets should not generally be higher than 1% of the bank's Tier 1 capital and must not exceed 2% of the bank's Tier 1 capital."
This has the effect of economically banning crypto from Tradfi (not even considering the de-banking issues)
https://www.bis.org/bcbs/publ/d533.pdf
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