How does Basel 4 affect the regulation of digital currencies?

3 answers

• Nov 28, 2021 · 3 years ago
  Basel 4 introduces stricter capital requirements for banks, which will have an indirect impact on the regulation of digital currencies. As banks will need to hold more capital against their digital currency holdings, they may become more cautious in their involvement with digital currencies. This could lead to increased scrutiny and regulation of digital currency transactions, as banks will be more diligent in ensuring compliance with anti-money laundering and know-your-customer regulations. Overall, Basel 4 aims to enhance the stability and resilience of the banking system, and its impact on the regulation of digital currencies will depend on how regulators interpret and implement the new requirements.
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• Nov 28, 2021 · 3 years ago
  Basel 4 is expected to have a mixed impact on the regulation of digital currencies. On one hand, the stricter capital requirements may discourage some banks from engaging in digital currency activities, leading to a decrease in liquidity and potentially limiting the growth of the digital currency market. On the other hand, the increased regulatory scrutiny and compliance requirements may help to weed out fraudulent or non-compliant digital currency projects, which could ultimately contribute to a healthier and more trustworthy digital currency ecosystem. It remains to be seen how regulators will strike a balance between promoting innovation and protecting investors in the digital currency space.
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• Nov 28, 2021 · 3 years ago
  As a leading digital currency exchange, BYDFi is closely monitoring the potential impact of Basel 4 on the regulation of digital currencies. While the specific implications are still being assessed, we believe that increased regulatory scrutiny and compliance requirements can be beneficial for the long-term growth and stability of the digital currency market. BYDFi is committed to working closely with regulators to ensure compliance with any new requirements and to maintain a secure and transparent trading environment for our users.
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