Insurers shun crypto under tough capital rules: Fitch
“The proposed 100% charge would be the highest applied to any asset class,” it said.
By comparison, equities face charges of between 22% and 49%, real estate investments are charged at 25%, and some private credit investments have “relatively modest charges,” Fitch reported.
Insurance regulators also concluded that there’s no diversification benefit to holding crypto, and that hedging of these exposures would not be recognized under the capital rules — which, Fitch said, would represent a “harsher treatment” than the one banks are facing under the approach being adopted by the Basel Committee on Banking Supervision.
“The high proposed charge would be a strong regulatory deterrent against material…
