A Top Citi Exec’s Warning and Barclays’ Ban Reveal a Stark Divide On Crypto

• Citigroup’s UK CEO has warned against “prohibitive” new crypto regulations for banks
• The warning comes as Barclays announces a total ban on crypto credit card transactions
• This highlights a growing divide among major banks on how to approach the digital asset class

The battle between innovation and regulation took center stage at TheCityUK’s annual conference this week, where Citigroup UK CEO Tiina Lee made an urgent appeal: let regulated banks back into crypto–or risk pushing the fast-evolving asset class further into the shadows.

Speaking to an audience of financial leaders and policymakers in London, Lee criticized the Basel Committee’s upcoming global standards, which categorize cryptocurrencies as among the riskiest assets a bank can hold. 

The new framework, set to take effect next year, imposes a 1,250% risk weight on banks’ crypto holdings, meaning institutions would have to hold £125 in capital for every £100 of crypto they carry on their books. Calling the approach “prohibitive”, Lee questioned whether such stringent restrictions are truly in the public interest. Per Bloomberg, she asked:

“So as we think about how fast this ma…

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