Basel Committee on Banking Supervision published a report in December claiming that all permissionless blockchains are risky and banks must exercise heightened measures when dealing with them.
In a recent meeting, the Basel Committee concluded that so-called ‘crypto assets’ concentrated in a small number of banks was one of the three major things that played a role.
The amendments to the CRR and CRD centered on regulating digital assets in the European Union include a transitional prudential regime for the sector and enhanced risk management of banks.
From crypto, authorities are now looking to enforce rules on public blockchains amid growing interests among banks to use the immutable global database for various business purposes.
The hallmark of the proposals from the Basel Committee on Banking Supervision (BCBS) for the regulation and prudential treatment of ‘crypto’ assets is a two-group taxonomy.
With the ‘crypto’ asset economy, Basel is attempting to stamp out any prospect of something similar occurring before it even gets off the ground.
The Basel Committee on Banking Supervision has released its second public consultation document detailing the proposed guidelines for the prudential treatment of ‘crypto’ asset exposure for banks.
In a statement, the body said that it is currently working towards issuing its second consultation paper on the prudential treatment of banks' digital assets exposure.
The Basel Committee on Banking Supervision has declared that cryptocurrencies pose a risk to traditional banks, but they still don’t think its currency.
