Swiss-based Financial Market Supervisory Authority FINMA issued advice to banks and other financial institutions to estimate risk coverage for cryptocurrencies at 800 percent of the current market value, according to a report by local news portal Swissinfo.
The media has reportedly seen a copy of a confidential letter from FINMA to the Swiss Association for Audit, Tax and Fiduciary (EXPERTsuisse) in which financial regulator explained its expectations about cryptocurrency regulation.
Thus, In the letter, FINMA recommended financial service providers to allocate a flat risk weight of 800 percent in order to mitigate risks related to highly volatile cryptocurrencies and digital assets.
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