Basel crypto rules: bad for traders, good for risk managers?
Practitioners divided over potential bank capital treatment for assets with no intrinsic value
Jamie Dimon is no fan of bitcoin. Just last month, the JP Morgan chief executive described the cryptocurrency as “worthless”.
And judging by its proposal to assign a 1,250% risk weighting to crypto currencies such as bitcoin and ether, it’s an opinion shared by the Basel Committee on Banking Supervision. But with several of JPM’s peers in the banking industry eyeing moves into the crypto trading space, it’s a divided field – and Basel will likely encounter some opposition as it mulls its next
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