The biggest U.S. and European banks, including JP Morgan Chase and Deutsche Bank, oppose new Basel rules for cryptocurrency risks.
Opposition to the rules say that they would nudge crypto trading into unregulated areas of the financial landscape. The rules make it so that banks which own cryptocurrencies must set aside one dollar in capital for every dollar in bitcoin owned.
The Basel Committee for Banking Supervision, based out of Switzerland, is a group of global central bankers and regulators. However, the rebuttal comes from the Global Financial Markets Association, which includes the likes of JP Morgan and Deutsche Bank. The latter sent the former a letter on Tuesday in opposition of such strict capital requirements for bitcoin.