The Basel Committee is planning a consultation on the subject of cryptocurrencies

The Basel Committee It has announced that it will publish a consultation document aimed at helping banks reduce their risk of exposure to cryptocurrencies.

According to the Bank for International Settlements (BIS), the Basel Committee will publish the document on exposure to cryptocurrencies this week.After deciding to hold a public consultation on the matter. The announcement came during a meeting on Friday in the The committee also discussed the impact of the current pandemic on the global banking system, as well as proposed policy initiatives:

“Although banks’ exposure to crypto assets is currently limited, the continued growth and innovation of crypto assets and related services coupled with the increased interest of some banks could reduce global concerns and risks of financial stability to the banking system in the absence of one certain regulatory treatment “.

The BIS added that although many authorities the approval of the Basel Committee, the regulator relies on its members to enforce the proposed measures. In other words, the committee’s decisions have no legal force. Banking regulators from countries such as Japan, the United States and many European nations are members of the group.

The Basel Committee is planning a consultation on the subject of cryptocurrencies
The Basel Committee is planning a consultation on the subject of cryptocurrencies

to ask “prudential treatment” of cryptocurrencies was a common theme of the committee. In 2019, The regulator said cryptocurrencies were “unsafe to trust” as a medium of exchange or store of value.

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