Pierre Rochard, CEO of Bitcoin Bond Company, has criticized the Basel III regulations for their lack of clarity regarding Bitcoin (BTC) capital requirements. Rochard warned U.S. banking regulators that the current Basel III proposal leaves unresolved issues on how Bitcoin-related activities should be managed, potentially increasing legal risks for banks involved in BTC transactions. He urged the Federal Reserve, FDIC, and OCC to demand a clear framework before finalizing these regulations.
Rochard highlighted that while Basel III provides guidance for other digital assets, it remains silent on Bitcoin, classifying it as a high-risk asset with a 1250% risk weighting. This classification imposes stringent capital requirements, making it challenging for banks to hold BTC or offer related services. The Fed plans to release a new draft regulation on Basel risk weighting rules, with a 90-day public consultation to follow.
Bitcoin Expert Criticizes Basel III's Unclear Rules on BTC
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