Yesterday the Basel Committee on Banking Supervision published a revised consultation on the capital requirements for crypto asset risk exposures. This is an iteration of the initial proposals issued last year. While some had hoped for more relaxed rules, with one major exception, they’re stricter, as the head of the committee warned previously. All mainstream stablecoins are unlikely to pass the tests, so they will be treated as extremely high risk like other cryptocurrencies.
Apart from allowing for hedging, as before, the Basel Committee classifies crypto-assets into traditional assets using DLT, stablecoins, and cryptocurrencies. The previous article elaborates on how Basel rules work in general.
The key changes are:
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