Cryptocurrency News

Global banking regulator plans to hold consultations on crypto exposure

The Basel Committee on Banking Supervision has said that it will publish a consultation paper aimed at mitigating the exposure to crypto for banks.

According to the Switzerland-based Bank of International Settlements or BIS, the Basel Committee To publish The paper on crypto exposure this week follows its decision to hold a public consultation on the matter. The announcement came during Friday’s meeting, in which the committee discussed the impact of the current pandemic on the banking system as well as any proposed policy initiatives:

“While banks’ exposure to cryptocurrencies is currently limited, continued growth and innovation in cryptocurrencies and related services, coupled with increased interest from some banks, may exacerbate global financial stability concerns and risks to the banking system. “

BIS said that although many officials demand Basel Committee approval, the regulator relies on its members to implement the proposed actions. In other words, the decisions of the committee do not have the force of law. Many countries in Japan, America and Europe are members of the Banking Regulatory Group.

Calling for “prudent treatment” of crypto has been a common theme for the committee. In 2019, the regulator that cryptocurrency were “unsafe to rely on” as a medium of exchange or store of value.