The Bank for International Settlement’s Basel Committee announced on the 10th a draft regulation on banks that handle crypto assets (virtual currency). If a bank owns crypto assets such as Bitcoin, it should prepare capital to cover all the losses, he said.
The Basel Committee has categorized crypto assets into two categories in the proposed regulation. The first is crypto assets that can be handled with complementary guidance centered on existing frameworks, including stable coins linked to fiat currencies such as the US dollar and digital tokenized asset classes.
He pointed out that the second category is Bitcoin (BTC) and other similar crypto assets, which carry higher risk than the first category. The proposed regulation sets the risk weight of crypto assets in this second category at 1250%, and states that banks holding Bitcoin and others must have capital worthy of their par value.
The Basel Committee requested each member to submit a response to the proposal by September 10.
｜ Editing: Shigeru Sato
｜ Top image: Bank for International Settlements (BIS) in Basel, Switzerland
｜ Original: Basel Committee Proposes Banks Set Aside Capital to Cover Bitcoin Exposure