Basel Committee Proposes ‘Conservative Treatment’ of Banks’ Bitcoin Exposure

Basel Committee Proposes ‘Conservative Treatment’ of Banks’ Bitcoin Exposure

The Bank for International Settlements’ Basel Committee proposed subjecting banks with bitcoin exposure to “a new conservative prudential treatment.”

  • The committee, which recently announced a public consultation on the treatment of crypto-asset exposure, suggested splitting them into two groups: those eligible for treatment under existing frameworks and those that are not.
  • Bitcoin and similar cryptocurrencies would fall under the latter category "since these pose additional and higher risks," an announcement Thursday said.
  • "They would be subject to a new conservative prudential treatment," according to the proposal.
  • The first category would consist of tokenized assets and stablecoins, which "with some modifications and additional guidance," would be eligible for treatment under existing rules.
  • The committee is inviting responses from stakeholders with a deadline for submission Sep. 10.
  • Source