Citigroup UK head: regulators must review cryptocurrency restrictions on banks

PANews June 27 news, according to Bloomberg, Tiina Lee, head of Citigroup UK, said at the CityUK annual conference that as the cryptocurrency market develops, regulators should review the current "restrictive" policy on banks holding crypto assets. She pointed out that the upcoming global new regulations require banks to set aside a 1250% risk weight for crypto assets, which means that banks need to set aside £125 of capital for every £100 of crypto assets they hold. This requirement essentially hinders regulated institutions from participating in the market.

Lee stressed that in the context of the Trump administration's strong support for the development of cryptocurrencies, regulators need to weigh whether to push crypto assets into the shadow banking sector or integrate them into the mainstream financial system through appropriate supervision. She believes that this will become an important topic for industry discussion. Current policies may cause crypto asset transactions to shift to less regulated areas rather than develop in a supervised environment.