Swiss financial watchdog recommends banks set crypto risk coverage at 800%
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The Swiss Financial Market Supervisory Authority (FINMA) is recommending the nation's financial-service providers allocate a risk weight of 800% for cryptoassets. Under this guideline, a financial-service provider must assume a value north of $50,000 for each bitcoin when calculating the risk weight of its assets, the Swissinfo report says. (Bitcoin currently trades at around $6,400.) The 800% weighting FINMA is suggesting is on the high-end for a financial asset, suggesting the authority views cryptoassets as very volatile. (Source: Swissinfo)
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Steven Zheng is a researcher for The Block. He joined The Block in August 2018. Steven graduated from St. John’s University with a degree in economics. Previously, he covered blockchain and crypto at Radicle, a startup analytics firm. He also had brief stints at Cheddar, a media startup, and Bowery Capital, a venture capital firm. He owns bitcoin. Follow Steven on Twitter at: @Dogetoshi
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