Citigroup UK Head: Regulators Must Reassess Cryptocurrency Restrictions on Banks

According to Gate news bot, Bloomberg reported that Tiina Lee, the head of Citigroup in the UK, stated at TheCityUK annual conference that regulators should reconsider the current "restrictive" policies on banks holding crypto assets as the crypto assets market develops. She pointed out that the upcoming global regulations require banks to apply a 1250% risk weight to crypto assets, which means banks need to set aside £125 in capital for every £100 of crypto assets they hold, effectively hindering regulated institutions from participating in the market.

Lee emphasized that, against the backdrop of the Trump administration's strong support for the development of Crypto Assets, regulators need to weigh whether to push Crypto Assets into the shadow banking sector or to integrate them into the mainstream financial system through appropriate regulation. She believes this will become an important topic of discussion in the industry. Current policies may lead to Crypto Asset trading shifting towards less regulated areas, rather than developing in a supervised environment.