Basel rules mean banks can’t compete with Coinbase – Goldman

Proposed 1,250% risk weight for crypto holdings undercuts banks’ push into burgeoning market

crypto-coins

Draconian capital rules proposed by global standard-setters will prevent banks from competing with upstart crypto natives, according to a Goldman Sachs executive.

Last year, the Basel Committee on Banking Supervision proposed a 1,250% risk weighting for unbacked cryptocurrencies. The industry has pushed back, arguing that heavily traded tokens such as bitcoin and ether should be included in the standardised approach to market risk capital instead.

Mathew McDermott, global head of digital

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