Singapore requires banks to hold $125 for every $100 Bitcoin exposure

Singapore’s senior minister Tharman Shanmugaratnam said on Nov. 28 that banks within the nation should maintain $125 of capital in opposition to each $100 publicity to dangerous crypto property like Bitcoin (BTC) and Ethereum (ETH).

In a written response to Singapore’s parliament, Shanmugaratnam stated Singapore-based banks have “insignificant” publicity to crypto. The Financial Authority of Singapore (MAS) minister added that the publicity stage was “lower than 0.05% of their complete risk-weighted property.”

Shanmugaratnam revealed that Singapore actively participated within the Basel Committee on Banking Supervision (BCBS) framework for banks’ publicity to crypto. He stated the committee is predicted to launch its remaining framework on the finish of the 12 months.

Nonetheless, pending the discharge of that framework, Shanmugaratnam stated the monetary regulator has ensured that banks within the nation have utilized the very best danger weight below the BCBS’ capital framework, which is a 1250% danger weight for exposures to riskier crypto property like Bitcoin and Ether.

The minister stated:

“For much less dangerous crypto property, corresponding to tokenised company bonds that meet a set of situations to make sure that they pose the identical stage of monetary dangers as conventional company bonds, the prudential remedy is just like that utilized to the normal non-tokenised asset.”

Singapore’s monetary authorities have issued a number of statements to clear misconceptions surrounding FTX’s publicity to Singaporeans. The MAS stated that the bankrupt crypto alternate was not licensed to function within the nation and defended why it was not positioned on its Investor Alert Record (IAL).

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