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Crypto Mixed; Basel Committee Issues Warning

Published 14/03/2019, 03:52 pm
© Reuters.
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Investing.com - Cryptocurrencies delivered a mixed performance on Thursday morning in Asia, though price movements in both directions were slight.

Traditional finance players took another shot at digital assets. The Basel Committee on Banking Supervision (BCBS), an international banking regulator, warned of the threat that crypto assets pose to banks and financial stability. The BCBS is a committee of banking supervisory authorities backed by the Bank for International Settlements (BIS) whose members include 60 of the world’s central banks.

In a warning issued on March 13, the BCBS said “the continued growth of crypto-asset trading platforms and new financial products related to crypto-assets has the potential to raise financial stability concerns and increase risks faced by banks.” It also noted that crypto tokens “do not reliably provide the standard functions of money and are unsafe to rely on as a medium of exchange or store of value.”

Cryptocurrencies did not move any more than usual on the warning.

On Thursday morning in Asia, Bitcoin lost 0.08%% to $3,873.1 by 11:05 PM ET (03:05 AM GMT). Ethereum dropped 0.48% to $132.15 and Litecoin slid 0.40% to $55.91, while XRP was up 1.24% to $0.31397.

Crypto investors also took note of Russia’s adoption of new digital rights legislation, which the State Duma voted in October to enact. The new legislation stipulates how digital rights can be exercised and transferred and formulates rules for digital transactions, including contracts.

State Duma Chairman Vyacheslav Volodin said the digital rights law “forms the basis for the development of the digital economy.”

Russia is embracing crypto fast. It is widely expected that a crypto bill will be adopted by the end of this month. President Vladimir Putin has ordered that crypto regulations be enacted by July.

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