[Bitcoin Now] Slight Drop to 42 Million Won Range... Continued Pressure from International Financial Institutions

Basel Committee "Banks to Face 1250% Risk Weight for Investing in Cryptocurrencies"
IMF Expresses Concern Over El Salvador Adopting Bitcoin as Legal Tender

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin slightly dropped to the 42 million KRW range. The Basel Committee on Banking Supervision (Basel Committee) classified cryptocurrencies as the highest risk assets, and the International Monetary Fund (IMF) expressed concerns over El Salvador, which adopted Bitcoin as legal tender, putting continuous pressure on the cryptocurrency market from international financial organizations.

According to the domestic cryptocurrency exchange Upbit, as of 11:14 AM on the 11th, Bitcoin recorded 42.15 million KRW, down 1.60% compared to the previous day. It had risen to 44.62 million KRW at 7:09 PM the previous day but then slightly declined.

The Basel Committee, an international financial organization, imposed regulations on the cryptocurrency market. The Basel Committee is composed of representatives from central banks and banking supervisory authorities of the 10 major countries and sets the overall direction for supervisory policies. According to U.S. economic media Bloomberg on the 10th (local time), the Basel Committee proposed imposing a 1250% risk weight on banks investing in cryptocurrencies. This means that banks must simultaneously hold other safe assets equivalent to 1250% of the cryptocurrency value to handle cryptocurrencies. The Basel Committee plans to finalize the measure after collecting opinions by September 10.

The Basel Committee made this decision due to the fatal drawbacks of cryptocurrencies. In a report, the Basel Committee explained, “Cryptocurrencies have high price volatility and can be misused for money laundering,” adding, “Assets related to cryptocurrencies can destabilize finance and put banks at risk.” This measure by the Basel Committee is expected to hinder the launch or investment of cryptocurrency-related financial products.

Another international financial organization, the IMF, recently expressed concerns that El Salvador’s decision to adopt Bitcoin as legal tender could cause various problems. According to Bloomberg on the 10th, Jerry Rice, IMF spokesperson, said, “Adopting Bitcoin as legal tender can cause many macroeconomic, financial, and legal issues, requiring careful analysis,” and “Generally, cryptocurrencies pose significant risks, and effective regulatory measures are very important.” On the same day, the IMF planned to meet with El Salvador government officials to discuss financial support. Previously, in April last year, the IMF approved emergency support of $389 million (approximately 432.3 billion KRW) to El Salvador.

This content was produced with the assistance of AI translation services.