Last week the Chair of the Basel Committee on Banking Supervision, Pablo Hernández de Cos, talked about crypto-assets. His personal view is that bank capital requirements for exposure to crypto-assets should be strong, consistent with the first Basel Committee consultation process, which started last year.
Those proposed rules gave the maximum 1250% risk weighting for most cryptocurrencies other than asset-backed stablecoins and tokenized conventional assets. The first round of feedback is now closed, and the second round of consultation is planned within months.
The Basel Chair said he did not want to pre-empt the results, but his personal view is that “diluting bank capital requirements because of a fear that crypto-asset activities will migrate outside the regulated banking system is not a convincing argument.”
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