The BCBS eye on the preventive measures against the risks associated with crypto-currencies

November 10, 2019 by Océane

While lending in crypto-currencies are experiencing an upsurge in notable, the Basel Committee on banking supervision (BCBS), aims to put in place suitable arrangements to cover the risks generated by the treatment of crypto-currencies.

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A maximum of vigilance on the part of the banks that you want

At the end of a two-day meeting in Madrid, the BCBS, which brings together banking regulators in the United States, Europe and Japan, had published a paper on the treatment of prudential asset digital, in which he urged the banks trying to deal with these assets taking into account the risks associated with them before submitting to them.
The committee has held in this regard :

“The treatment of prudential exposures to crypto-banks assets should correspond appropriately to the high degree of risk of the latter. “

Support from the parties concerned

To increase the vigilance, the committee will determine the share of capital provided by each lender to ensure the coverage of risks generated by the treatment of crypto-currencies.
To this end, the committee of banking supervision authorities would consider to solicit the views of the stakeholders in the sector in order to treat them properly.
The Basel committee has also announced that it will conduct examinations concerning the dependence of the banks in respect of third party non-regulated, particularly for the cloud, and data.
The consultation document final expected to enter into force in the month of January in the year 2022.
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