Basel Committee’s “final” crypto exposure standards not the final word, practitioners say

Basel Committee’s “final” crypto exposure standards not the final word, practitioners say

December 20, 2022, Global Banking Regulation Review

Michael Nonaka's commentary was featured in an article appearing in Global Banking Regulation Review about the Basel Committee's release of its long-awaited new prudential standard for banks with crypto exposures. The committee’s oversight body, the Group of Central Bank Governors and Heads of Supervision (GHOS), has endorsed its implementation.

According to Mike, the endorsement by GHOS of a regulatory capital standard for banks' crypto holdings is an important and timely step forward for digital asset regulation.

“Prudential regulatory capital requirements are a critical precondition to the banking industry providing digital asset services, and local implementation processes will reflect the committee's consultations to date as well as supervisors' experiences and responses to the high-profile bankruptcies that have occurred this year," Mike said.

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