LONDON (Reuters) - Global regulators said on Tuesday they will complete work by year end on how much capital banks should hold to cover cryptoassets on their books.
Last June the committee proposed that banks set aside enough capital to cover losses on any bitcoin holdings in full.
Certain tokenised traditional assets and stablecoins could, however, come under existing capital rules and be treated like bonds, loans, deposits or commodities.
Earlier this month TerraUSD, a stablecoin tied to the U.S. dollar, collapsed.
"Recent developments have further highlighted the importance of having a global minimum prudential framework to mitigate risks from cryptoassets," the Basel Committee said in a statement.
"Building on the feedback received by external stakeholders, the Committee plans to publish another consultation paper over the coming month, with a view to finalising the prudential treatment around the end of this year."
Countries which are members of Basel are committed to applying...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...