10 June 2021, Singapore –
Basel Committee issues public consultation on preliminary proposals for the prudential treatment of banks’ cryptoasset exposures.
The proposals split cryptoassets into two broad groups: those eligible for treatment under the existing Basel Framework with some modifications; andothers, such as bitcoin, are subject to a new conservative prudential treatment.
The Committee invites submissions on the proposals by 10 September.
The Basel Committee on Banking Supervision today issued a public consultation on preliminary proposals for the prudential treatment of banks’ cryptoasset exposures. While banks' exposures to cryptoassets are currently limited, the continued growth and innovation in cryptoassets and related services, coupled with the heightened interest of some banks, could increase global financial stability concerns and risks to the banking system in the absence of a specified prudential treatment.
Given the rapidly evolving nature of this asset class, the Committee believes that policy development for cryptoasset exposures is likely to involve more than one consultation. This initial public consultation, which follows a discussion paper published in December 2019, will allow further work to continue with the additional benefit of incorporating feedback from external stakeholders.
The proposed prudential treatment outlined in the consultation divides cryptoassets into two broad groups:
Central bank digital currencies are not within the scope of the consultation.
The Committee welcomes comments on the proposals, which should be submitted here by 10 September 2021. All submissions will be published on the BIS website unless a respondent specifically requests confidential treatment.
Re-disseminated by The Asian Banker