The Basel Committee on Banking Supervision (BCBS) which is the international banking authority, issued a warning on crypto assets today, March 13 that we are discussing more about in our crypto news below.
The BCBS is a committee of banking authorities that conduct supervision which is supported and hosted by the Switzerland-based Bank for International Settlements (BIS) that is actually an organization consisted of 60 of the largest central banks in the world.
According to the issued statement, the committee warns that the massive growth of he crypto industry could pose a serious threat and to ‘’raise financial stability concerns and increase risks faced by banks.’’ The committee also pointed out that the risks were already here despite the crypto market’s small scale when compared to the entire, global financial system.
The BCBS also made clear that the crypto assets are ‘’unsafe to rely on’’ as a store of value or as a medium of exchange which are the two most important functions of money while actually saying that cryptocurrency is a living contradiction. Providing a list of risks associated with the relations between a bank and a crypto related business, there are the ones that we are most familiar with including money laundering, terrorist financing, hacking and fraud. For that reason, the committee provided another list of the minimum requirements for a bank to be able to operate with crypto-related services.
The committee also pointed out that if a bank decides to work with crypto-related assets, first it should ensure that it has the relevant technical expertise which can bring for the bank to accurately evaluate the risks that come out by using or doing business with crypto assets. The bank should also guarantee a clear and effective risk management framework for an improved protection of the relevant data of the bank.
The bank should also be able to disclose any other crypto-related services together with the usual financing disclosures but most importantly to e complaint with all the general and local regulations.
Back in January, the BIS published a research where they claim that the departing from the Proof-of-work bitcoin system won’t actually solve any major issue that occur by the biggest cryptocurrency. Also, the BIS reported that nearly 70 percent of the global central banks are looking into the benefits of the central bank digital currencies issuance but clear plans for an implementation are still far away and depending on the context and timing.
XLM Jumps By 11% After Banks Got Interested In IBM’s Stellar Blockchain Opportunity
Digitec Galaxus Group From Switzerland Officially Accepts Crypto Payments
“By using Coinify, we are not running into the knife. It is still not clear to me how blockchain is any better than other database technologies. The transactions are so far more expensive and slower than a normal payment method. Decentralization brings only cumbersome improvements. None of the blockchains scale enough. But maybe I have not invested enough time and therefore understand too little how the blockchain ecosystem works.”Herren said that the decision comes after the prolonged bearish correction on the market where most of the crypto assets lost nearly a third of their value. Despite the fact that investors didn’t really get scared of the decline in prices, institutional adoption is still uncertain regarding making more profits. For example, back in 2018 in June, the Expedia hotel booking platform deleted Bitcoin out of their options and in the same year couple of months back, Reddit also stopped accepting cryptocurrency for its gold membership plans. Years back, Bitcoin became popular because of its attractiveness as a cheaper alternative for expensive payment processors. But as the technology got more popular, the network was unable to handle a higher number of transactions such as Visa or MasterCard and that’s why retailers didn’t choose crypto for making transactions. The Swiss retail giant brings bitcoin back into the retail game. However, traders who are into crypto or those who just hold on to it for better days can now use their coins to purchase something from the retail platform.
New Report Shows That Bithumb Is Laying Off 50% Of Its Staff
“Voluntary retirement is part of our support program for former employees and is intended to provide assistance and training for job placement. Apart from that, [Bithumb’s] trading volume has decreased compared to the previous year, [so] we are trying to provide internal measures. We will continue to add necessary personnel for various new businesses.”Bithumb still hasn't responded to the requests for comment. However, many speculate that this move is right because of the crypto winter which led to a lot of minuses all over the market. Still, what's interesting is that Bithumb has been preceded by many other firms in the sector - such as the mining giant Bitmain, the blockchain software company ConsenSys, the decentralized social network named Steemit as well as the similar crypto exchanges Coinsquare and Huobi - all of the companies which have decided to make significant cuts in the recent months. According to data from CoinMarketCap (CMC), Bithumb has seen more than $1.3 billion in trades over the past 24 hours. The exchange, however, was removed from the CMC global exchange rankings in January 2018 mostly because of the concerns that the site had over the reportedly "extreme divergence in prices from the rest of the world" and its fellow exchanges in South Korea. Currently, everyone is waiting for an official confirmation about the layoff from Bithumb. The respected exchange hasn't confirmed anything yet but will probably do that over the next couple of days.
Stellar (XLM) Makes Moves Up, Binance Coin (BNB) Flips
Join us on Facebook
- Binance Launched Completes Another Successful Token Sale Of Celer Network
- XLM Jumps By 11% After Banks Got Interested In IBM’s Stellar Blockchain Opportunity
- Trade On YorkBit Today: A Legit Broker With Low Fees
- Digitec Galaxus Group From Switzerland Officially Accepts Crypto Payments
- QuadrigaCX Co-Founder Was Involved In Criminal Activities In The Past
UPCOMING EVENTS RECOMMEND BY DC FORECASTS
Altcoin News4 days ago
Bitcoin Dominance Falls To 2019 Low: Is The Altcoin Season Here?
Bitcoin News1 day ago
Block.one CEO: Bitcoin Will Replace Gold As The Leading Commodity
Altcoin News4 days ago
Bitcoin Slowly Reaching $4,000 While Stock Market Goes Green
Bitcoin News3 days ago
BTC Lightning Network Surpasses 1,000 BTC Network Capacity On Its First Birthday
Bitcoin News4 days ago
Boston Legal System Damaged After BTC Ransomware Attack
Bitcoin News2 days ago
Analysis: Could Institutional Adoption Bring The Financial Elite To Destroy Bitcoin?
Altcoin News4 days ago
Cryptocurrencies Are Not Banned In Mexico: Bitcoin Exchange
Blockchain News4 days ago
Blockchain Representatives Raise Concerns About A Nevada Crypto Bill