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Bitcoin Price Shoots up After Global Regulator Proposes First Ever Rules for Banks to Hold Crypto

The rise of digital currencies like bitcoin has brought a lot to consumers. We have seen a lot of things come out after the rise of this digital currency, from the banning of some states to the opening of many companies like Tesla, while others see an opportunity in this bitcoin. The bitcoin, although it has been seen down and now up, you can find too many things now tied to this digital currency. Lately, it has been officially recognized as a major asset by everyone, even by groups like the Basel Committee, which has labeled it as an asset class. This group is called the regulator of the global banking standards that accompany the proposal to introduce capital standards related to digital currency.

You can also think about following all the latest price updates as well as the predictions that you see coming with the live coverage from the group called The Independent that is in the digital market. The global banking regulators seen coming with the type of bitcoin categorized in order to see the high risk asset, while talking about the category of the global banking regulations, bitcoin is put in the high risk asset, which further proposes with the risk weight of around 1250%. However, it seems that this proposal comes with another key step for bitcoin fund, as well as for traditional finance. The proposal appears to have been published last Thursday and makes a distinction between digital currencies, including bitcoin, and other digital currencies such as ETH and even so-called stablecoins, including Tether, which are now backed by traditional assets, including the U.S. dollar.

Although banks are exposed to digital currency-based assets, this exposure remains limited. With the rapid growth and constant innovation found in cryptocurrency-based assets, as well as related services, a good resurgence of interest can be found in some banks, while improving global financial stability and risks to the banking system in the absence of specific, prudential treatment by the Basel Committee. With the rapidly growing nature of the asset class, the committee believes that the development of policy for digital exposure is more likely to be considered a one-off consultation.

The news appears to have come just a day before El Salvador becomes the first nation to officially recognize bitcoin as legal tender. Bitcoin has backed the proposal accompanying the global regulation that will introduce a series of people with capital requirements for the various banks that handle the digital currency. Bitcoin has become an important digital currency that has achieved a current value of $33.414. The announcement made by the Basel Committee appears to be yet another sign of the reaction of traditional finance to the rise of digital currency based assets.

While the proposal appears to have introduced some of the toughest types of capital controls, some action by regulators can also be found. The reasons are that digital assets are not growing faster in the market, which helps them to prepare the best in the banking sector, as well as how to address the outdated adoption philosophy. However, it can be seen that the panel is not very enthusiastic when it comes to addressing concerns about financial stability risks, in addition to the extreme volatility of digital currency with respect to money laundering.

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Written by Piyush GRCG


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