Last June the committee has already suggested that banks cover losses from bitcoin ownership with a sufficient capital reserve
Global regulators are going to rule the cryptocurrency market with a rod of iron. Source: depositphotos.com
According to Reuters, regulators team up to protect the investors funds and put pressure on banks to have reserve funds. Due to the mind-boggling downfall of Luna in recent memory, it’s a huge step that will safeguard a lot of investors.
Yesterday, global regulators reached a consensus that by the end of the year they will jointly decide on the amount of reserve funds the capital banks should have in their accounts to cover expenses in case of the downfall of cryptocurrencies.
Last summer, the committee put forward conditions for banks to allocate capital to cover losses of customers who lost their BTCs. However, not all cryptocurrencies can be referred to the category of assets that fall under this regulatory norm.
Stablecoins, for example, can be treated as stocks or securities. Due to the latter news with one of the most famous stablecoins Luna where investors lost a huge amount of money and nobody made a refund to the victims, the committee wants banks to have reserve capital in their accounts to cover losses in the long run.
Investors should be protected by the Law. This document will be valid for all countries that are members of Basel. The directives that will be in this document are related to risk management and practices to prevent them in any situation.
We’ve reported that JP Morgan is sure as a gun that cryptocurrencies have surpassed the real estate market.
SEE ALSO:
