📑According to PANews, Citigroup's UK head, Tiina Lee, addressed the need for regulatory bodies to reassess the current restrictive policies on banks holding cryptocurrency assets during TheCityUK annual conference. Lee highlighted that upcoming global regulations will require banks to allocate a 1250% risk weight to crypto assets. This means banks must reserve £125 in capital for every £100 of crypto assets held, effectively hindering regulated institutions from participating in the market.
Lee emphasized that under the administration of U.S. President Donald Trump, which strongly supports cryptocurrency development, regulators must decide whether to push crypto assets into the shadow banking sector or integrate them into the mainstream financial system through appropriate regulation. She believes this will become a crucial topic of discussion within the industry. Current policies may drive crypto asset trading towards less regulated areas rather than allowing it to develop within a supervised environment.$WCT