Acting Comptroller Discusses Trust in Global Banking, Lessons for Crypto

WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today discussed building and maintaining trust in global banking in remarks at the Institute for International Bankers.

The Acting Comptroller discussed how the failure of the Bank of Credit and Commerce International (BCCI) in 1991 led to significant changes in how global banks are supervised. He highlighted similarities between BCCI and cryptocurrency exchange FTX and offered thoughts on what lessons this may hold for crypto advocates and policymakers.

“To be trustworthy, global crypto firms need a lead regulator who has authority and responsibility over the enterprise as a whole,” said Acting Comptroller Hsu. “Until that is done, crypto firms with subsidiaries and operations in multiple jurisdictions will be able to arbitrage local regulations and potentially play shell games using inter-affiliate transactions to obfuscate and mask their true risk profile.”

He also shared his support for implementing enhanced regulatory capital requirements that align with the final set of Basel III standards.

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