Global regulators push ahead with crypto bank capital rules

Certain tokenised traditional assets and stablecoins could, however, come under existing capital rules.

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.

(Sign up to our Technology newsletter, Today’s Cache, for insights on emerging themes at the intersection of technology, business and policy. Click here to subscribe for free.)

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."