Basel Committee Signals New Restrictive for Crypto
Pexels.com [modified]
Main page Finance, Regulations, Cryptocurrency
Hot topic
June 1, 2022

The Basel Committee is working on a second consultative paper, which will finalize guidelines for banks that want to offer crypto services. Although no details were revealed, the committee wrote in a press release that it plans to publish another consultation paper "over the coming month, with a view to finalizing the prudential treatment around the end of this year."

Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world

"Recent developments have further highlighted the importance of having a global minimum prudential framework to mitigate risks from cryptoassets," the press release says.

Basel Warns Over Risk of 'Regulator Shopping' in Crypto Market

The Basel Committee published the first consultation paper in 2021, calling for financial institutions to hold $1 in fiat money for every $1 worth of cryptocurrency. However, not all big players were glad about the proposal as JPMorgan and Deutsche Bank noted that the requirement "would preclude bank involvement in crypto asset markets," if banks were forced to meet them.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange

Read also:
Please describe the error
Close