Swiss Regulator Advises Banks to Apply 800% Risk Weighting to Cryptos

[kreslik.news]

The Swiss Financial Market Supervisory Authority (FINMA) has advised banks that they should apply a risk weighting for cryptocurrencies such as Bitcoin of eight times (800 per cent) their market value when calculating loss-absorbing capital buffers.

The regulator has not yet taken an official position on how cryptocurrencies can be merged into Basel III capital requirements or liquidity ratios. However, in a confidential letter to EXPERTsuisse, an association that represents trustees and accountants in Switzerland, the regulator has revealed its current thoughts and guidelines on the issue of digital assets.

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