Basel revises bank crypto capital plan to include blockchain
— Banking regulators, Extra capital, Conservative prudential treatment, Dado ruvic, Cryptocurrencies, Conservative approach, Would require banks, Revises, Financial system, Also proposed — 1 min read
Basel Committee of banking regulators says banks should take conservative approach to setting aside capital to cover risks from "unbacked" crypto assets on their books. Regulators worried about potential risks to the financial system from lightly regulated crypto sector. The proposals mark Basel's second public consultation on cryptocurrencies, which would require banks to take a conservative stance when setting aside funds for crypto holdings. The committee plans to finalise the rules by year-end and will monitor market developments to see if the proposals need toughening further. The proposal also includes extra capital for "evolving risks" from distributed ledger technologies or blockchain, which underpins cryptoassets, also now also cover blockchain. The Committee said it will continue to monitor market development to see whether the proposals Source