Banks say draft capital rules make cryptoassets too costly to trade

FILE PHOTO: A representations of cryptocurrency Bitcoin and Binance is seen in this illustration taken August 6, 2021. REUTERS/Dado Ruvic/Illustration

LONDON (Reuters) - Proposed capital rules for banks holding cryptoassets on their books could block lenders from competing in the fast-growing sector, a group of industry lobbying groups said, though they urged watchdogs to act quickly to finalise the regulations.

The Basel Committee on Banking Supervision, comprising regulators from the world's main financial centres, proposed in June a graduated approach to capital requirements for cryptoassets held by banks.