Basel Committee consults on prudential treatment of crypto exposures

The Basel Committee is consulting on preliminary proposals on how to treat banks’ cryptoasset exposures.  It notes that exposure is currently limited, but there is the prospect that heightened exposures could increase stability concerns.  The paper notes that they are two broad groups of assets – those eligible for treatment under the existing Basel framework, like tokenised traditional assets and stablecoins, and those like bitcoin, which pose higher and additional risks and which should be subject to a new prudential treatment.

Comments are welcomed by 10 September.