Basel Committee Proposes Differentiating Regulation of Crypto Assets Based on Risks to Banks

Basel Committee Proposes Differentiating Regulation of Crypto Assets Based on Risks to Banks
фото показано с : news.bitcoin.com

2021-6-13 18:30

The Basel Committee on Banking Supervision has proposed dividing crypto assets into two groups and regulating them based on their market, liquidity, credit, and operational risks to banks. Cryptocurrencies, such as bitcoin, will be subject to “a new conservative prudential treatment.”

Crypto Regulation Proposed by Basel Committee on Banking Supervision

The Basel Committee has proposed regulating crypto assets based on their risks to banks. The Bank of International Settlement (BIS) published the committee’s public consultation on “preliminary proposals for the prudential treatment of banks’ cryptoasset exposures” Thursday.

The BIS explained that banks’ exposures to cryptocurrencies are currently limited. However, it added:

Continued growth and innovation in crypto assets and related services, coupled with the heightened interest of some banks, could increase global financial stability concerns and risks to the banking system in the absence of a specified prudential treatment.

The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the prudential regulation of banks. Its 45 members comprise central banks and bank supervisors from 28 jurisdictions. The committee’s secretariat is located at the BIS in Basel, Switzerland.

The committee’s “proposals differentiate between crypto assets based on the market, liquidity, credit and operational risks they present for banks,” the BIS described, elaborating:

The proposals split crypto assets into two broad groups: those eligible for treatment under the existing Basel Framework with some modifications; and others, such as bitcoin, are subject to a new conservative prudential treatment.

if (!window.GrowJs) { (function () { var s = document.createElement('script'); s.async = true; s.type = 'text/javascript'; s.src = 'https://bitcoinads.growadvertising.com/adserve/app'; var n = document.getElementsByTagName("script")[0]; n.parentNode.insertBefore(s, n); }()); } var GrowJs = GrowJs || {}; GrowJs.ads = GrowJs.ads || []; GrowJs.ads.push({ node: document.currentScript.parentElement, handler: function (node) { var banner = GrowJs.createBanner(node, 31, [300, 250], null, []); GrowJs.showBanner(banner.index); } });

The first group includes “certain tokenized traditional assets and stablecoins,” the BIS clarified, adding that crypto assets in the second group “pose additional and higher risks.”

Submissions on the proposals must be made by Sept. 10. However, the BIS stated that due to the rapidly evolving and complex nature of this asset class, more than one consultation is likely needed. The BIS further noted that central bank digital currencies (CBDCs) are not within the scope of the consultation.

What do you think about the Basel Committee’s proposals? Let us know in the comments section below.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Based Money ($BASED) на Currencies.ru

$ 0.8899 (-0.45%)
Объем 24H $0
Изменеия 24h: 0.68 %, 7d: 18.08 %
Cегодня L: $0.8899 - H: $0.8899
Капитализация $0 Rank 3775
Доступно / Всего 0 $BASED / 100k $BASED

based risks assets basel banks crypto committee

based risks → Результатов: 41


Nexus Mutual Sees Active Cover Growing 10x, Now Token Price ‘Directly Linked to Adoption’

“DeFi is developing faster than you can say ‘protect me from the risks in DeFi’,” said Kayleigh Petrie, Director of Engagement at Nexus Mutual, an Ethereum based insurance protocol. Given the sector’s high risk, high gain motto, it makes sense the need for insurance coverage is growing in line with the sector, which has yet […] The post Nexus Mutual Sees Active Cover Growing 10x, Now Token Price 'Directly Linked to Adoption' first appeared on BitcoinExchangeGuide.

2020-9-19 19:10


Chainlink to Provide Decentralized Weather Data for Arbol’s Crop Derivatives on Ethereum

Chainlink has partnered with Arbol, a crop insurance startup, to enable farmers to hedge against weather risks based on Ethereum’s smart contract infrastructure. Arbol will leverage Chainlink’s decentralized data feed to keep its fundamentals up to date such that the farmers are settled in time and at the prevailing market prices. Arbol’s smart contract ecosystem […]

2020-8-20 18:35


Cryptocurrency Focused Insurer, Evertas, Raises A $2.8 Million Seed Round Led by Morgan Creek

Chicago based Evertas insurance has raised $2.8Million in a recent seed round. The insurance company, formerly known as BlockRe, was founded in 2017 by current CEO J Gdanski. They have zeroed in on the crypto realm, helping their clients reduce exposure to crypto-related risks offering expertise in insurance, Blockchain, investigation, and financial audits. The seed […]

2020-7-15 22:29


China’s State-Owned Bank, CCB, Launches A Blockchain-Based Small Business Financing Platform

One of China’s largest financial institutions, China’s Construction Bank (CCB) launched its blockchain based re-factoring platform. The announcement, released on December 10th by local news outlet, Sina Finance App, further points out the bank aims to boost efficiency and reduce risks pinned to the factoring business.

2019-12-11 17:04


Фото:

UK regulator wants crypto-derivatives ban to protect ‘ill-suited’ retail investors

The UK‘s Financial Conduct Authority has proposed a ban on cryptocurrency-related investment products to protect retail investors. In an announcement released earlier today, the FCA said that cryptocurrency-based derivatives and exchange traded notes (ETNs) are “ill-suited to retail consumers who cannot reliably assess the value and risks.

2019-7-3 15:43


Sidechains vs Plasma vs Sharding

Special thanks to Jinglan Wang for review and feedback One question that often comes up is: how exactly is sharding different from sidechains or Plasma? All three architectures seem to involve a hub-and-spoke architecture with a central “main chain” that serves as the consensus backbone of the system, and a set of “child” chains containing actual user-level transactions.

2019-6-14 04:03


Фото:

Cryptocurrency and Cannabis: Risky Investments with a Twist

While classifying investments based on growth potential and risks, investors tend to cluster cryptocurrency, cannabis, and biotech together. While cryptocurrency has several more dimensions of risk, Rob Wertheimer of Melius Research gave a strong point of difference between cannabis and cryptocurrency in an interview with Yahoo Finance, June 11, 2019.

2019-6-12 17:00


TradeFinex Launches An Updated Website Supporting Financial Instruments

The TradeFinex website has recently undergone some significant changes. The redesigned site highlights; achieving liquidity and interoperability of financial instruments as the main objective. With the updated TradeFinex site, the entities can mitigate counter-party risks by making their digital bonds and invoices; liquid and interoperable.

2019-4-15 18:00


Фото:

Bitcoin Price Analysis: Consolidation Breaks Out Into Macro Resistance Test

Over the course of the last 10 days, bitcoin has managed to rally nearly 20% in value as it burst through two major resistance levels and is now beginning the test of a major macro level:Figure 1: BTC-USD, Daily Candles, Macro ResistanceWe can see a clear, descending supply-and-demand channel that governed the market for the last two months.

2019-2-20 01:38


Colibra Token ICO: Blockchain Democratic Insurance Company?

What Is Colibra? Colibra is the world’s first insurance company that seeks to change how to handle risk and how people are treated when risks occur. Colibra is an open crowdsourced platform based on blockchain technology that handles non-parametric insurance claims and the payment of claims in an automated, transparent, and autonomous way. The main objectives […]

2018-11-10 11:15


China's Central Bank Wants to Put the Damper Airdrops: Report

The People's Bank of China (PBoC), China's central bank, has its eyes on cryptocurrency companies that run airdrop campaigns in the country. In its most recent financial stability report for 2018, which was published on Friday, November 3, 2018, the bank said there has been a surge in the number of "disguised" Initial Coin Offerings (ICO), including the free distribution of crypto tokens through airdrops, despite its effort to clamp down on their activities.

2018-11-5 22:04


China's Central Bank Wants to Put the Damper on Airdrops: Report

The People's Bank of China (PBoC), China's central bank, has its eyes on cryptocurrency companies that run airdrop campaigns in the country. In its most recent financial stability report for 2018, which was published on Friday, November 3, 2018, the bank said there has been a surge in the number of "disguised" Initial Coin Offerings (ICO), including the free distribution of crypto tokens through airdrops, despite its effort to clamp down on their activities.

2018-11-7 22:04


Фото:

The Genesis Files: With Bit Gold, Szabo Was Inches Away From Inventing Bitcoin

As his Hungarian parents had fled post-war Soviet regime to settle in the United States, Nick Szabo came to call the Californian Bay area of the 1990s his home. Here, he was among the first to frequent the in-person “Cypherpunk” meetings organized by Timothy May, Eric Hughes and other founding members of the collective of cryptographers, programmers and privacy activists centered around the ’90s mailing list of the same name.

2018-7-13 17:16