ABI Director-General pushes for fair regulation of encrypted assets
It is reported that in an event today, Giovanni Sabatini, Director-General of the Italian Banking Association (ABI), called for a fair competitive environment …
It is reported that in an event today, Giovanni Sabatini, Director-General of the Italian Banking Association (ABI), called for a fair competitive environment for the regulation of encrypted assets. He is discussing the final Basel cryptocurrency rules, requiring banks to give 1250% risk weight to cryptocurrency (the second group of cryptocurrency assets). This usually means setting aside one euro of capital for each euro of cryptocurrency exposure. In addition, the Basel rules limit risk exposure to 2% of Tier 1 capital.
Official of the Italian Banking Association: The Basel Cryptocurrency Rules put banks at a disadvantage
Interpretation of the news:
In the on-going debate on how to regulate encrypted assets, Giovanni Sabatini, Director-General of the Italian Banking Association (ABI), has called for a fair competitive environment. Sabatini’s statement is timely because the Basel Committee on Banking Supervision (BCBS) recently released the final cryptocurrency rules. The rules, if implemented, will require banks to set aside an equal amount of capital for each euro of cryptocurrency exposure. In other words, the rules require banks to adopt a 1250% risk weight on cryptocurrency assets. This move is part of the broader efforts by international regulators to manage the perceived volatility, risks and concerns surrounding encrypted assets.
From a strategic perspective, BCBS is keen to promote the prudent management of capital for banks that are engaged in crypto-assets. It is designed to mitigate the risks of crypto-assets and avoid another financial crisis, given the rising popularity of such assets. The proposed rules constitute the minimum standards that banks must follow. Also, regulators expect banks to impose additional measures, based on the bank’s own risk management framework.
The Director-General’s call for a fair competitive environment for regulated encrypted assets signals the growing recognition that cryptocurrencies are here to stay, and they will continue to be an essential component of the global financial system. The directive to limit the risk exposure to 2% Tier 1 capital underscores the understandable concern of international regulators of protecting investors by managing the risks involved in cryptocurrency trade.
The Director-General’s statement is crucial, and it brings to focus the realities and the challenges facing the regulation of encrypted assets. While it is clear from the directive that regulators are concerned about the risks associated with cryptocurrencies, it is also important to note that there is a need to balance their concerns with the need to ensure that the playing field remains fair and competitive.
In conclusion, while the move to adopt 1250% risk weight by allowing banks to set aside one euro of capital for each euro of cryptocurrency exposure is commendable, there is a need to ensure that such measures do not stifle innovation, and that a fair competitive environment is created for encrypted assets. The Director-General’s call for fair competition is, therefore, a step in the right direction, and the regulatory environment should embrace more practical, innovative, and flexible regulations to facilitate growth in the digital asset sphere.
This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/ai/3773.html
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Related recommendations
-
The Story of Franklin: A Cautionary Tale of Crypto Investment
On April 19th, it was reported that Franklin, a well-known BAYC holder, has deleted his Twitter account. Franklin sold off a large amount of BAYC on April 13th. Franklin previously
-
MakerDAO Co-founder sells LDOs and buys MKRs
It is reported that according to the monitoring data of Twitter encrypted KOL Bit embers, Rune, the co-founder of MakerDAO, sold 760000 LDOs (about 1.9 million…
-
Web3 Collaboration Platform, Dmail, Integrates Conflux Network to Support Encrypted Messaging
It is reported that the Web3 collaboration platform Dmail announced the integration of Conflux Network, which supports Conflux users to log in to Dmail and sen…
-
What does the Jingtong Foundation mean (Jingtong Engineering)
What does the Inoue Foundation mean? The Inoue Foundation is an open source, free and autonomous organization controlled by a new entity called “Inoue”. In English, “Jingtong” means to manage a new type of corporate culture through code. And this new entity is also known as “Jingtong” because it is the first non-profit social group to apply blockchain technology to commerce So what is Jingtong? What is the Jingtong Foundation? Why do you say that? The Jingtong Foundation has three meanings: 1. Software: Anyone can create and publish their own cloud products; 2. Services: Provide blockchain based technology solutions, such as decentralized networks Jingjingtong EngineeringRecently, Jingjingtong Engineering signed an agreement with the Beijing Urban Sub center on the construction of a national blockchain public service system, which will provide a one-stop solution for government, finance, and people’s livelihood fields. Jingtong Project is one of the largest “Internet plus” application technology development platforms in China, and also the first enterprise in…
-
Bored Ape Yacht Club Partners with XCMG Group for Web3 Exploration Plan
According to reports, construction machinery manufacturer XCMG Group announced BAYC (Bored Ape Yacht Club) # 3489 as its ambassador for the universe at the CONEXPO-CON/AGG exhibition in Las Vegas, US, and announced its web3 exploration linkage plan. XCMG Announces BAYC # 3489 as Its Yuan Universe Ambassador Analysis based on this information:Reports have emerged that XCMG Group, a leading construction machinery manufacturer, has named Bored Ape Yacht Club # 3489 as its “ambassador for the universe” at the recent CONEXPO-CON/AGG exhibition held in Las Vegas. In a statement, the company announced its plans for a web3 exploration linkage plan as part of its collaboration with the Bored Ape Yacht Club, which is a collection of unique digital art featuring ape-inspired characters. The announcement comes as a surprise, especially for those unfamiliar with the blockchain NFT space. However, it’s not uncommon for blockchain-based companies and projects to enter into partnerships with well-established and renowned companies in a bid to boost their…
-
The Rise of Incubator DAO: Breaking Down the Rook Labs Proposal Vote
On April 11th, Rook Labs, the development entity of the MEV project Rook, initiated a community proposal vote, planning to split nearly $50 million in treasury assets into two part
-
The Surge of Independent Users on the Arbitrum One Network
According to the latest data of Dune Analytics, the number of independent users of the Arbitrum One Network has exceeded 2.5 million, currently 2509180, and th…
-
Coinbase’s Ethereum L2 Network Base to Implement Transaction Monitoring and AML Measures
According to reports, Brian Armstrong, CEO of Coinbase, said that the company\’s newly launched Ethereum L2 Network Base might take transaction monitoring and a…
-
ForTube Loses Over $60,000 Due to Flash Loan Attack: An Overview
On April 29th, according to official Twitter, ForTube, a multi chain crypto asset lending agreement, stated a loss of over $60000 due to a flash loan attack. Currently, the technic
-
The Impact of Elon Musk’s Tweets on Dogecoin
According to reports, Musk earlier replaced the Twitter homepage logo with the original blue dove pattern, causing Dogecoin to drop by 9% in the early morning. On April 3rd, the Tw