<ul data-eligibleForWebStory="true"><li>Citi UK CEO Tiina Lee emphasized that regulators should not impose overly restrictive measures on banks' cryptocurrency holdings, as it could drive these assets into the shadow banking sector.</li><li>Lee expressed concerns about the 1,250% risk weight charge on crypto assets that will be enforced next year, questioning whether it is better to have crypto assets supervised appropriately or in the non-regulated sphere.</li><li>Regulators globally are grappling with finding a balance between managing risks associated with cryptocurrencies and leveraging the opportunities they offer.</li><li>The European Commission is reportedly preparing to unveil rules governing the stablecoin market, while the Bank for International Settlements has expressed doubts about the future role of stablecoins due to regulatory concerns.</li><li>In the U.S., banking regulators have signaled a new regulatory openness to banks engaging in digital asset activities, highlighting a shift in attitude towards cryptocurrencies.</li></ul>

Citi UK CEO: Regulators Should Not Force Crypto Into Shadow Banking Sector

Discover more