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The legislator of global standards of banking regulation plans to complete the consideration of crypto assets closer to the end of this year.
The Basel Committee on Banking Supervision published updated information about the meeting on May 27. During this meeting, there was talk of significant progress on a consultation paper on a “prudential approach to banking risks with respect to crypto assets.”
Last year, for the first time, the body published a consultation paper proposing to introduce strict capital requirements for banks with access to cryptocurrency, in addition to applying the existing structure to cryptocurrency and issuing recommendations to address any gaps.
It has received feedback from stakeholders, on the basis of which the following consultations will be based. It is planned to publish this document around the end of this year, the official report said.
Recent events have further highlighted the importance of having a global minimum prudential framework in place to mitigate the risks associated with crypto assets.
In recent weeks, the cryptocurrency markets have seen a significant decline, and the algorithmic stablecoin UST has lost its peg. The first edition of the consultation paper addressed, among other things, the credit and market risk requirements for stabilization mechanisms in tokens.
In addition to its plans in the field of cryptocurrency, the body also considered climate-related financial risks and vulnerabilities of the global banking system.
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