Swiss financial regulator: Risk ratio …
Swiss financial regulator: Risk ratio for crypto investments is 800%
According to Swissinfo, the Swiss Financial Market Authority (FINMA) has unofficially signaled that the risk ratio for cryptocurrency investments should be 800%. The department announced this figure in a letter dated October 15 in response to a request from the EXPERTsuisse association, which includes experts in the field of tax and audit activities..
In its letter, FINMA also said that the relevant legal provisions are not yet in force, therefore banks and other interested organizations often demanded that this issue be clarified. “FINMA has recently received many inquiries from banks and securities dealers holding positions in crypto assets, as well as subject to capital adequacy requirements, risk allocation and legal regulations on the calculation of short-term liquidity ratios,” Swissinfo quotes FINMA representatives.
For several years now, Switzerland has been officially integrating crypto products and the banking sector – this European country is trying to create a legal environment in advance that can support the development and functioning of new financial instruments..
At the same time, according to Swissinfo, until the International Basel Committee on Banking Supervision develops all the acts and laws necessary to regulate this area, FINMA can give only approximate figures. However, the final decision may be announced at the end of November, when the next meeting of the Basel Committee will take place..
Consequently, all cryptoassets “must be assigned an overall risk ratio of 800% in order to cover market and credit risks, regardless of where positions are held – in banking or traders’ assets,” says a letter to FINMA..
According to several sources who commented on the situation, 800% is a large number, but it is within the acceptable range. For example, SEBA startup, which raised $ 103 million in September to set up a cryptocurrency bank in Switzerland, said the recommendation would “have limited impact on its business model.”.
“It is good to see that banks are no longer turning their backs on the growing number of clients looking for cryptocurrency-related services, but asking for advice and contributing to it,” a spokesman for the Bitcoin Association Switzerland lobby group told Swissinfo..
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