š„The Basel Committee has published a global prudential standard for banks’š„
The Basel Committee has published a global prudential standard for banksā exposures to crypto assets, whereby unbacked crypto assets and stablecoins with ineffective stabilization mechanisms will be subject to a conservative prudential treatment.
Governors and Heads of Supervision endorse global bank prudential standard for crypto assets and work program of Basel Committee
Press release | 16 December 2022
The Basel Committee's oversight body endorses a global prudential standard for banks' exposures to crypto assets, for implementation by 1 January 2025.
Endorses the Committee's work program and strategic priorities for 2023ā24.
The program prioritizes work on emerging risks and vulnerabilities, digitalization, climate-related financial risks and Basel III implementation.
The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, met on 16 December to endorse a finalized prudential standard on banks' crypto asset exposures and the Committee's work program and strategic priorities for 2023ā24.
Today's endorsement by the GHOS marks an important milestone in developing a global regulatory baseline for mitigating risks to banks from crypto assets. It is important to continue to monitor bank-related developments in crypto asset markets. We remain ready to act further if necessary.
Tiff Macklem, Chair of the GHOS and Governor of the Bank of Canada
The Committee's standard on crypto asset is a further example of our commitment, willingness and ability to act in a globally coordinated way to mitigate emerging financial stability risks. The Committee's work program for 2023ā24 endorsed by GHOS today seeks to further strengthen the regulation, supervision and practices of banks worldwide. In particular, it focuses on emerging risks, digitalization, climate-related financial risks and monitoring and implementing Basel III.
Pablo HernƔndez de Cos, Chair of the Basel Committee and Governor of the Bank of Spain
Crypto assets
The GHOS endorsed the Committee's finalized prudential treatment for banks' exposures to crypto assets. Unbacked crypto assets and stablecoins with ineffective stabilization mechanisms will be subject to a conservative prudential treatment. The standard will provide a robust and prudent global regulatory framework for internationally active banks' exposures to crypto assets that promotes responsible innovation while preserving financial stability. GHOS members agreed to implement the standard by 1 January 2025, and tasked the Committee with monitoring the implementation and effects of the standard.
While the global banking system's direct exposures to crypto assets remain relatively low, recent developments have further highlighted the importance of having a strong global minimum prudential framework for internationally active banks to mitigate risks from crypto assets. To that end, the GHOS tasked the Committee with continuing to assess bank-related developments in crypto asset markets, including the role of banks as stablecoin issuers, custodians of crypto assets and broader potential channels of interconnections. More generally, the Committee will continue to collaborate with other standard-setting bodies and the Financial Stability Board to ensure a consistent global regulatory treatment of stablecoins.
Basel Committee work program for 2023ā24
The GHOS also endorsed the strategic priorities and work program of the Committee for 2023ā24. In addition to pursuing a forward-looking approach to identifying and assessing emerging risks and vulnerabilities to the global banking system, the work program places high priority on work related to the ongoing digitalization of finance, climate-related financial risks and monitoring, implementing and evaluating the Basel III framework.
https://www.bis.org/press/p221216.htm
https://www.bis.org/bcbs/bcbs_work.pdf