The Basel Committee on Banking Supervision (BCBS) launched a consultation (to run until 10 September 2021) on preliminary proposals for the prudential treatment of banks' crypto-asset exposures (excluding central bank digital currencies), which divide crypto assets into two broad groups:

  • Group-1 crypto assets, e.g., certain tokenised traditional assets and stablecoins, fulfil a set of classification conditions and as such are eligible for treatment under the existing Basel Framework (with some modifications and additional guidance).
  • Group-2 crypto assets, such as bitcoin, do not fulfil the classification conditions and pose additional and higher risks, so they would be subject to a new conservative prudential treatment.
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