The Basel Committee, the world’s standard-setting organisation for banks, has finalised the rules that will define the requirements for banks to be allowed to have cryptocurrency exposure, categorising the assets into two groups.
Stablecoins and tokenized assets are included in the first group, while other cryptocurrencies are included in the second.
Among the new directives announced by the institution on December 16 is the establishment of a maximum amount of cryptocurrency that banks can hold. This is recommended to be 1% of their Tier 1 capital, which includes such institutions’ core assets as reserves and stocks. The Basel Committee establishes 2% as the maximum amount of cryptocurrency that banks may hold.
Stablecoins, which are part of the first group, have to comply with strict rules to be considered as such, and will not be able to be received as collateral.
About the importance of this crypto framework, Pablo Hernandez de Cos, chairman of the Basel Committee and Governor of the Bank of Spain, stated: “The Committee’s standard on cryptoassets is a further example of our commitment, willingness and ability to act in a globally coordinated way to mitigate emerging financial stability risks.”
(Reporting by Shikha Singh, Editing by Laxmikant Khanvilkar)
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