Swiss financial watchdog recommends banks set crypto risk coverage at 800%

RegulationNovember 6, 2018, 11:16AM EST
UPDATED: November 6, 2018, 11:36AM EST
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)