Today the Basel Committee on Banking Supervision (BCBS) launched a consultation on proposed changes to crypto-assets rules for bank capital requirements. Tokenized securities and stablecoins issued on permissionless blockchains will be classed as high risk alongside other cryptocurrencies. It also tightened the rules on stablecoin reserve assets.
Regarding permissionless blockchains, after a review the Committee concluded permissionless blockchains involve a reliance on third parties. The problem is that banks are unable to fully carry out due diligence or oversight. Hence it concludes that crypto-assets on permissionless blockchains should not be classified as Group 1. This group applies more or less conventional capital requirements.
In contrast, Group 2 which includes all cryptocurrencies, is considered high risk. It requires banks to set aside at least a dollar of capital for every dollar of crypto-assets held.
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