Basel Committee: Banks worldwide reportedly own €9.4 billion in crypto assets
The study found that banks mostly held volatile cryptocurrencies and had little exposure to stablecoins. According to a new study published by the Basel Committee on Banking Supervision, a supranational organization responsible for setting the standards on bank capital, liquidity and funding, 19 out of 182 global banks supervised by the committee reported that theyowned digital assets. Combined, their total exposure to crypto is estimated to be €9.4 billion ($9.38 billion). In context, this represents 0.14% of the total risk-weighted asset composition of the 19 crypto-owning banks....
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A first-of-its-kind study published by the Basel Committee on Banking Supervision details that the world’s largest financial institutions are exposed to roughly €9.4 billion (US$9 billion) in crypto assets. The research paper authored by the Basel Committee’s secretariat Renzo Corrias further explains that out of all the banks’ total risk exposure, cryptocurrency exposure is estimated to be around 0.01% of total exposures. Banks Have $9 Billion in Cryptocurrency Exposure Equating to Roughly 0.01% of Total Risk Exposure A recent study published by the Basel....
The Basel Committee on Banking Supervision has proposed dividing crypto assets into two groups and regulating them based on their market, liquidity, credit, and operational risks to banks. Cryptocurrencies, such as bitcoin, will be subject to “a new conservative prudential treatment.” Crypto Regulation Proposed by Basel Committee on Banking Supervision The Basel Committee has proposed regulating crypto assets based on their risks to banks. The Bank of International Settlement (BIS) published the committee’s public consultation on “preliminary proposals for the....
Volatile cryptocurrencies such as Bitcoin would also be subjected to a 1,250% risk premium. On Thursday, the Basel Committee on Banking Supervision suggested during its second consultation on the prudential treatment of crypto-asset exposures that banks limit their exposure to so-called Group 2 crypto assets to just 1% of their Tier 1 capital. Group 1 digital assets consist of tokenized traditional assets, such as synthetic stocks, or those with effective stabilization mechanisms, such as regulated stablecoins. Under the new proposal, Group 1 digital assets would be subject to at least....
The Basel Committee on Banking Supervision proposed tough requirements for banks that want to hold cryptocurrencies like Bitcoin. The Basel Committee on Banking Supervision (BCBS), a global committee of banking supervisors and central banks, has proposed new requirements for banks that want to hold cryptocurrencies like Bitcoin (BTC).In a consultation paper published Thursday, the committee provided preliminary proposals for the prudential treatment of crypto exposure by banks.The paper built on the contents of the committee’s 2019 discussion paper and responses received from various....
Introducing a groundbreaking proposal, the Basel Committee, consisting of banking regulators from major global financial hubs, has mandated standardized disclosure of crypto assets by major banks starting from January 2025. This initiative’s primary objective is to strengthen “market discipline” by providing investors with an all-encompassing insight into the digital currency holdings and activities of these […]