- The British CEO of Citigroup warned against the new “prohibitive” regulations for banks
- The warning comes as Barclays announces a total ban on cryptographic credit card transactions
- This highlights a growing ditch between large banks on how to approach the class of digital assets
The battle between innovation and the regulations took the scene at the Thecityuk annual conference this week, where the CEO of Citigroup UK, Tiina Lee, made an urgent call: leave the regulated banks in the crypto – or risks pushing the class of assets with rapid evolution further in the shadows.
Addressing an audience of financial leaders and political decision-makers in London, Lee criticized the next global standards of the Basel Committee, which classify cryptocurrencies as among the risky assets that a bank can hold.
The new executive, which is expected to come into force next year, requires a risk weight of 1,250% on crypto assets of banks, which means that institutions should contain £ 125 in capital for each £ 100 crypto that they transport their books. Calling the “prohibitive” approach, Lee wondered if such strict restrictions were really in the public interest. According to Bloomberg, she asked:
“So, while we are thinking about the speed of this mother …
The position has a warning from Top Citi Exec and the Barclays ban reveals that a crypto fracture appeared first on Coin Edition.
