#Bitlaer Impact of Basel Committee Capital Rules on the Growth of the Crypto Industry

According to Cointelegraph, the Basel Committee on Banking Supervision (BCBS) has implemented capital requirements that are perceived as a strategic barrier to the expansion of the cryptocurrency sector. Chris Perkins, president of the investment company CoinFund, argues that these banking standards create a 'bottleneck', increasing reserve requirements for banks holding crypto assets, thereby reducing their return on equity (ROE). This makes financial activities related to cryptocurrencies economically unfeasible for banks, effectively stifling the growth of the industry. Perkins explains that regulations indirectly suppress activity by making banks' participation in cryptocurrency projects extremely expensive, forcing them to prioritize investments in businesses with high return on equity.