#CelebratingNewYearOnGateSquare ‼️ Basel Requirements Hamper Cryptocurrency Development

📉 Leaders of crypto companies with Bitcoin on their balance sheets are calling on the Basel Committee on Banking Supervision (BCBS) to reconsider Basel III capital requirements.

Existing standards stipulate that banks holding cryptocurrencies must maintain a reserve of 1250%, compared to 0% for cash or gold, or 400% for private company stocks.

“This is a very subtle way to suppress (cryptocurrency) activity, making these operations too expensive for banks,” says CoinFund President Chris Perkins.

In November, the head of BCBS acknowledged that cryptocurrencies require a different approach. But no real changes have been made yet.