A confidential letter from the Supervisory Authority of the Financial Markets of Switzerland (FINMA) clearly shows that, according to its criterion, cryptoactive agents such as bitkins are in the highest risk category. This is reported by the Swiss news portal SVI svissinfo.ch, who had access to the document.
The report states that FINMA forwarded a letter to the association EKSPERTsuisse, which grouped Swiss auditors, trustee and accountants. In a statement dated 15 October, the regulator issues an opinion on growing issues from banks and securities operators on the calculation of the short-term liquidity rate in case of cryptoactive data.
The institution advises banks and other financial actors to adopt the upper limit in the range of risk weights, to manage cryptoactive activities. In that sense, he pointed out that the bank should "allocate a flat risk weight of 800% to cover market and credit risks, regardless of whether the positions are held in a bank or in a trading book. "
The calculation would allow banks and other financial institutions to retain a capital buffer to absorb losses. With the current offer of Bitcoin (BTC) calculated in the amount of US $ 6,419.56 according to CoinMarketCap, Banks should set a value of US $ 51,356.48 for each BTC in their books.
Experts have interpreted this risk allocation as the FINME statement on the high instability of bitches and altcoins, the report said. As noted, trade in crypto-activates in Switzerland is at the same level of risk as hedge funds activity.
On the other hand, FINMA has highlighted this Cryptoactive trading activities should not exceed 4% of the total capital of a financial institution. In addition, it is considered that banks must notify the supervisory authority when they reach that limit.
The institution points out in a letter that it has not yet set an official stance on how to merge cryptoactive probes with the capital requirements of Basel III or liquidity indices. FINMA noted that it has developed the guidelines contained in the document after consulting with the Swiss financial sector, including the Swiss Banking Association (SBA).
Despite the facts of FINMA on instability of cryptocupages, the Association of Bitcoin of Switzerland pointed out that there are important advantages there that will support the development of this type of property, despite the limitations of the recommended percentage of capital that financial institutions can devote to trade in crypto currencies.