Bitcoin price rises as the Basel committee proposes rules for bank capital

Bitcoin rebounded following a proposal from global regulators that would introduce capital requirements for banks trading cryptocurrencies.

The largest digital token rose 5.1% to $ 38,250 at 11:07 a.m. in London.

The announcement by the Basel Committee on Banking Supervision is yet another sign that the world of traditional finance is reacting to the surge in crypto assets. While the proposal would introduce tight capital controls, it also shows that regulators are taking the fast-growing market seriously and preparing the banking industry to deal with its widespread adoption.

Still, the panel did not hesitate to express its concern about the risks to financial stability posed by crypto’s extreme volatility and the potential for money laundering.

This feeling has been repeated countless times by politicians. In an interview on Wednesday, Massachusetts Democratic Senator Elizabeth Warren told the cryptocurrency market the “Wild West” and said digital currency was “not a good way to buy and sell things and not a good investment and an environmental disaster” .

Bitcoin was stuck in the middle of the $ 30,000 mark last month after a sharp sell-off in May when prices flirted at $ 60,000. Billionaire Elon Musk’s public criticism of the energy needs of the digital currency and action by Chinese regulators have diminished enthusiasm for the market.

The market experienced a brief spike on Wednesday, rising 8% that day after El Salvador became the first country to officially adopt Bitcoin as legal tender.

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