Basel Committee wants to limit banks' digital asset exposure to just 1% of equity
Cointelegraph
Published Jun 30, 2022 11:04AM ET
Updated Jun 30, 2022 12:40PM ET
On Thursday, the Basel Committee on Banking Supervision suggested during its second consultation on the prudential treatment of crypto-asset exposures that banks limit their exposure to so-called Group 2 crypto assets to just 1% of their Tier 1 capital.
Group 1 digital assets consist of tokenized traditional assets, such as synthetic stocks, or those with effective stabilization mechanisms, such as regulated stablecoins. Under the new proposal, Group 1 digital assets would be subject to at least equivalent risk-based capital requirements as traditional capital assets within the current capital framework, Basel III.
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Written By: Cointelegraph
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