Banking regulator consults on cryptoasset risks

The Basel Committee on Banking Supervision has launched a consultation on preliminary proposals for the prudential treatment of banks’ cryptoasset exposures

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 Basel Committee said.

Cryptoassets have given rise to a range of concerns including consumer protection, money laundering and terrorist financing, and their carbon footprint.

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