Basel Committee Recommends Differentiation of Crypto Assets Based on Banks' Risk

The Basel Committee on Banking Supervision proposed dividing crypto assets into two groups and arranging them according to their operational risk to the market, liquidity, credit and banks. Cryptocurrencies like Bitcoin will be subject to "neo-conservative prudence." Crypto regulation proposed by the Basel Committee on Banking Supervision The Basel Committee proposed to regulate crypto assets according to their risk to banks. The Bank for International Settlements (BIS) released its public opinion on Thursday on the commission's "preliminary proposals for banks' prudent treatment of crypto-asset risks." The BIS has announced that banks' exposure to cryptocurrencies is currently limited. However, he added that continued growth and innovation in crypto assets and related services, coupled with increased interest from some banks, could raise global concerns about risks to financial stability and the banking system in the absence of certain prudent treatment. . The Basel Committee on Banking Supervision (BCBS) is the main global standard-setter for the prudent regulation of banks. 45 members consist of central banks and banking supervisors from 28 jurisdictions. The committee's secretariat is located at the BIS in Basel, Switzerland. “Commission offerings differentiate crypto-assets based on the market, liquidity, credit and operational risks they pose to banks,” the BIS explained. and others, such as bitcoin, are subject to neoconservative prudence. The BIS explained that the first group includes "certain tokenized traditional assets and stablecoins," and crypto assets in the second group "involve additional and higher risks." Entries for bids must be submitted by 10 September. However, BIS is rapidly evolving.

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