Banks oppose restrictions on working in the crypto industry, and Novogratz is not worried about the fall of the digital currency market

Banks from the USA and Europe oppose the restrictions on working on the crypto market

The largest American and European banks, including JP Morgan and Deutsche Bank, are confident that the latest regulatory requirements limit the work of financial institutions on the crypto market. Earlier, it was decided that financial institutions that have digital assets must ensure their full backup.

The initiative came from the Basel Committee on Banking Supervision of the Bank for International Settlements. The committee believes that when banks invest in crypto assets, it is necessary to adhere to a “conservative approach”, since digital currencies pose a possible threat to the financial stability of a credit institution.

“We find the proposals in the consultation to be so overly conservative and simplistic that they, in effect, would preclude bank involvement in crypto asset markets,” the Global Financial Markets Association said in a letter to the Basel Committee.

Banks believe that the new requirements are an attempt by regulators to stop or deprive financial institutions of any incentives to develop in new markets.

Mike Novogratz prefers to remain calm amid major crypto coins falling

Galaxy Digital founder Mike Novogratz said that he was “not nervous” about the short-term prospects of the digital asset market, until BTC fell below $ 40'000, and ETH — $ 2'800.

“As long as those [levels] hold, I think the market is in good shape,” he said.

The entrepreneur considers the fall of bitcoin on Monday, September 20, below the level of $43'000, a “healthy correction”, which is caused by the market’s concern about the decisions of American regulators and data on the probable default of the largest developer in China, Evergrande. Novogratz is confident that the fall in the rate of cryptocurrencies did not have a significant impact on institutional investors.

“I see nothing but the interest and activity on the part of our clients and corporate investors,” added Novogratz.