rallied following a proposal from global regulators that would introduce capital requirements for banks dealing in crypto.
The largest digital token gained 5.1% to $38,250 as of 11:07 a.m. in London.
The announcement from the Basel Committee on Banking Supervision is another sign that the world of traditional finance is responding to the rise of crypto assets. While the proposal would introduce tough capital controls, it also shows that regulators are taking the fast-growing market seriously and preparing the banking industry for how to deal with its widespread adoption.
Still, the panel didn’t hold back in voicing its concerns over the risks to financial stability posed by crypto’s extreme volatility and potential for money laundering.
It’s a sentiment that’s been echoed countless times by policymakers. In an interview on Wednesday, Massachusetts Democratic Senator Elizabeth Warren said called the market for the “Wild West,” and said digital currency is “not a good way to buy and sell things and not a good investment and an environmental disaster.”
has been stuck in the mid-$30,000s for the past month after a sharp selloff in May, when prices were flirting with $60,000. Public criticism of the digital currency’s energy needs by billionaire Elon Musk and a Chinese regulatory crackdown have sapped enthusiasm for the market.
The market got a brief lift on Wednesday, rallying 8% on the day, after El Salvador became the first country to formally adopt as legal tender.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
First Published: Thu, June 10 2021. 17:49 IST