TechFlow News — The Basel Committee has classified bitcoin into the highest risk category in its bank capital proposal.
Under the global regulator's plan, banks holding bitcoin and other crypto assets will face the strictest capital requirements to safeguard financial stability against volatile markets. The Basel Committee on Banking Supervision stated that banks are exposed to greater risks from crypto assets due to potential money laundering, reputational concerns, and extreme price volatility that could lead to defaults. The group proposes assigning a 1250% risk weight to bitcoin and certain other cryptocurrencies.
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