Basel Committee Releases Update on Crypto-Asset Banking Compliance Rules

2024/07/17 21:10

Odaily News The Basel Committee has released an update to its crypto asset banking compliance rules. In its latest consultation, the committee threatened to treat traditional digital securities on public blockchains as having the same risks as cryptocurrencies. This would prevent banks from participating in tokenization initiatives on public blockchains because they are too costly. In addition, the two largest proposed changes regarding stablecoins were removed from the final changes. The consultation suggested that all stablecoin reserves must be placed in a bankruptcy remote tool. It is worth mentioning that the Basel Committee is also considering prohibiting the use of securities financing transactions such as repurchases and reverse repurchases in stablecoin reserves. (Ledgerinsights)

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