The Basel Committee, which is made up of banking regulators from Japan, Europe and the US, has accepted to release a document on the wise handling of crypto assets.
The Committee, at the end of two-day meeting in Madrid, suggested banks to consider the risks associated with cryptocurrencies before having an exposure:
“The Committee reiterated its view that the prudential treatment of banks’ crypto asset exposures should appropriately reflect the high degree of risk of crypto assets.”
The organization, considering the various cryptocurrency projects across the globe, pointed out that it will discuss with crypto industry participants to handle digital assets in a wise manner.
The Basel Committee also stated that it will study the dependence of banks on unregulated third parties for various services such as cloud computing. The final advisory paper will become effective in January 2022.
In 1974, The BCBS committee consisting of banking overseeing authorities was setup by the central bank governors of the G10 countries.
Last month end, Genesis Capital, the crypto asset lending firm targeting institutions, published its Q3 report, which indicates an increasing demand for fiat currency and stablecoin lending as the firm recorded $870 million worth new dealings in Q3 2019.