BIS starts consultation on regulating banks' exposure to cryptoassets
The world's watchdog for central banks began a public consultation on Thursday on preliminar proposals for how lenders' exposure to cryptocurrencies should be regulated.
"While banks' exposures to cryptoassets are currently limited, the continued growth and innovation in cryptoassets and related services, coupled with the heightened interest of some banks, could increase global financial stability concerns and risks to the banking system in the absence of a specified prudential treatment," the Bank of International Settlements said in a statement.
Proposed regulation divided cryptoassets into two groups.
A first group was eligible for treatment under the existing regulatory framework and included "certain tokenised traditional assets and stable coins".
However, of the second group, which included the likes of Bitcoin, BIS said that they "pose additional and higher risks, [so] they would be subject to a new conservative prudential treatment."
The consultation period was due to end on 10 September, but BIS added that more consultations were likely given the "rapidly evolving nature of this asset class".
Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news and we may not share the views of the author or publisher. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.