A confidential letter from the Swiss Financial Market Authority (FINMA) shows that critical factors such as Bitcoin are, according to the criterion, the highest risk category. The Swiss news portal reported this SWI swissinfo.ch, who had access to the document.
The report states that FINMA provided a letter to the EXPERTsuisse, which grouped Swiss auditors, asset managers and accountants. In a communication dated 15 October, the regulatory authority issued an opinion on the growing demand for banks and securities traders for critical operations in calculating short-term liquidity.
The institution urges banks and other economic operators to accept a risk-weighting ceiling for critical substances. In this regard, he pointed out that the bank should "set an 800% risk weight level, covers market risk and credit risks regardless of whether there are positions in the bank or in trading. "
Thanks to this calculation, banks and other financial institutions could maintain a capital buffer to absorb losses. With the current Bitcoin (BTC) list of US $ 6,419.56, according to CoinMarketCap, Banks must set a US $ 51,356.48 value for each BTC in their books.
Experts interpreted this risk allocation as FINMA's statement on the high volatility of bitcoin and altcoins, the report said. As noted, trading in cryptoactive stocks in Switzerland is at the same risk level as hedge funds.
On the other hand FINMA pointed out that The proportion of Kryptotekniset operations must not exceed 4% of the capital of the financial institution. It also considers that banks must notify the supervisory authority when they reach this limit.
The company states in a letter that it has not yet formulated an official position on combining critical actions to pool Basel III capital requirements or liquidity indices. FINMA pointed out that it has designed the guidelines set out in the document as a Swiss Financial Adviser, including the Swiss Banking Association (SBA).
Although FINMA's views on the fluctuation in critical currencies varied, the Swiss Bitcoin associations pointed out that there were significant advances that contributed to the development of this type of asset despite the fact that financial institutions could own an encryption currency trading.