The financing industry bodies call for changes in the coding rules for banks

Written by Elizabeth Hakroft

(Reuters) -A group of financial industry bodies calls for re -thinking about the regulatory standards that they say will make it difficult for banks to participate in the encryption markets.

The Banking Supervision Committee agreed to Basel, which includes enrolled and central banks from the world’s main financial centers, on a set of criteria in 2022 for how banking banks are managing and unveiling on exposure to encryption principles.

In an open letter to the committee, the various financing industry groups said that the encryption market has changed since 2022, which made the proposed standards very conservative.

While the encryption market is still a small part of the public financial system, it has become rapidly in recent years, as cryptocurrency prices have reached its highest standard levels. It is also increasingly linked to the prevailing financial markets.

Banks are trying to take advantage of a transformation in the organizational environment in the United States, as President Donald Trump has followed a supportive approach. American organizers have facilitated this year that banks participate in encryption activities.

The message said: “The registration criteria for Cryptoasset Standard, along with punitive capital treatments and credit risk, make it unlawful to banks that are useful in the encryption market.”

The letter called to the committee to “stop temporarily” to implement new standards, search for new information and consider making changes.

The signatories included the International Financial Markets Association, the International Finance Institute and the International Association for Combating and Derivatives – which pressure the main financial sector – as well as the encryption industry groups.

The Basel Committee has no enforcement powers, but its members agree to apply their standards to international banks in their judicial states. The standards surrounding the encryption are scheduled to enter in January 2026.

The bank did not respond to international settlements, as the Basel Committee is immediately to request the comment.

She left a series of collapses in the main encryption companies in 2022 millions of investors from its pocket and revealed a widespread miscalculation in this industry, which prompted calls for the organization.

(Horseofediting by David Godman’s coverage)