Swiss financial regulators are not waiting for official rules to be published when it comes to warning about cryptocurrencies.
According to Swiss Info, the Swiss Financial Market Supervisory Authority has told the EXPERTsuisse association representing Swiss trustees and accountants that cryptoassets should be risk weighted at eight times their market value when banks calculate loss-absorbing capital buffers.
“Finma has recently received an increasing number of enquiries from banks and securities dealers holding positions in cryptoassets and are subject to capital adequacy requirements, risk distribution regulations and regulations for the calculation of short-term liquidity ratios,” according to a classified Finma letter, dated Oct. 15, that the publication said it obtained.
Officially, Finma has no position on cryptocurrencies. But until the Basel Committee on Banking Supervision, which sets global banking standards, makes any recommendations, Finma said in the letter it is advising banks these digital assets should be “assigned a flat risk weight of 800 percent to cover market and credit risks, regardless of whether the positions are held in the banking or trading book.”
The Basel Committee next meets Nov. 26-27 and may have something more to say then about cryptocurrencies and the mainstream banks that want to offer them. Read more here.