Basel Committee Calls For Tighter Regulation Of Cryptocurrencies

The Basel Committee on Banking Supervision (BCBS) on Thursday, June 10, published its recommendations on banking assets in cryptocurrencies. According to the analysts of the committee, “the growth of cryptocurrency assets and related services could potentially increase concerns about financial stability and increase the risks facing banks.” The committee proposed a “new conservative approach” to banks’ assets in cryptocurrencies, including bitcoin – in its opinion, banks should have capital that 100% covers the possible risks associated with such assets. In other words, banks must have sufficient funds to cover all losses in the event that the cryptocurrencies at their disposal become devalued.

These are the most stringent capital requirements – in the case of other assets, even high-risk ones, the capital requirements are lower. “Some assets in cryptocurrencies demonstrate a high level of volatility and may pose risks for banks with an increase in the number of such assets,” the BCBS notes. “Crypto assets raise a number of concerns, including with regard to consumer protection, money laundering, terrorist financing, and their carbon trace “. The BCBS proposals have been posted for public comment, the results of which are due to be presented in September.

This week El Salvador became the first country to recognize Bitcoin as its official currency alongside the US dollar.

Read more in the publication “Kommersant” “In El Salvador gave the green light to bitcoin.”

Yana Rozhdestvenskaya

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