Basel Committee Proposes Risk-Weighted Assets Framework for Cryptoassets
Monday, July 12, 2021 BACKGROUND On 10 June 2021, the Basel Committee on Banking Supervision (BCBS) published a preliminary proposed framework for the prudential treatment of cryptoasset exposures based on classification cryptoassets (the Proposal). 1 Under the Proposal, banks would be subject to risk-weighted capital and liquidity and on-going monitoring requirements for cryptoassets held on their balance sheets. Specifically, the Proposal seeks to map the regulatory capital requirements for cryptoassets that are redeemable into physical assets to the treatment of those assets an...
Source: natlawreview.com