Basel Committee issues public consultation on preliminary proposals
for the prudential treatment of banks' cryptoasset
The proposals split cryptoassets 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.
Committee invites submissions on the proposals by 10
The Basel Committee on Banking Supervision today
issued a public consultation on preliminary proposals for the
prudential treatment of banks' cryptoasset exposures. While banks'
exposures to cryptoassets are currently limited, the continued growth
and innovation in cryptoassets 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.
Given the rapidly evolving
nature of this asset class, the Committee believes that policy
development for cryptoasset exposures is likely to involve more than
one consultation. This initial public consultation, which follows a
discussion paper published in December 2019, will allow further work
to continue with the additional benefit of incorporating feedback from
The proposed prudential treatment
outlined in the consultation divides cryptoassets into two broad
Group 1 cryptoassets - these fulfil a set of
classification conditions and as such are eligible for treatment under
the existing Basel Framework (with some modifications and additional
guidance). These include certain tokenised traditional assets and
Group 2 cryptoassets - are those, such as bitcoin,
that do not fulfil the classification conditions. Since these pose
additional and higher risks, they would be subject to a new
conservative prudential treatment.
Central bank digital
currencies are not within the scope of the consultation.
Committee welcomes comments on the proposals, which should be
submitted here by 10 September 2021. All submissions will be published
on the BIS website unless a respondent specifically requests
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