Share this article

Basel Committee to Review Proposed Capital Requirements for Banks With Crypto Assets

The banking regulator plans to issue a new consultative document in 2022.

Bank for International Settlements. Basel, Switzerland.
Bank for International Settlements. Basel, Switzerland.

The global standard-setter for banking regulation plans to elaborate on its proposed capital requirements for crypto assets after receiving criticism from leading global banks.

  • The Bank for International Settlements’ Basel Committee said Tuesday that it will “further specify” the proposed capital requirement and issue a new consultative document by mid-2022.
  • The statement was released after the committee reviewed comments on its consultation from June, which said banks exposed to high-risk crypto assets like bitcoin should hold capital equal to the exposure.
  • Under that proposal, a bank with an original exposure to crypto of $100 has a minimum capital requirement of $100.
  • A forum of some of the largest global banks, including JPMorgan Chase and Deutsche Bank, opposed the requirement, calling it “overly conservative” and said it could preclude bank involvement in the crypto market.
  • In Tuesday’s statement, the Basel Committee said its members had reiterated the importance of “developing a conservative risk-based global minimum standard” to manage risks to the banking system from crypto assets that is consistent with the general principles laid out in its previous consultation.

Sandali Handagama

Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She is an alumna of Columbia University's graduate school of journalism and has contributed to a variety of publications including The Guardian, Bloomberg, The Nation and Popular Science. Sandali doesn't own any crypto and she tweets as @iamsandali

CoinDesk News Image

More For You

Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access

JPMorgan CEO Jamie Dimon

A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.

What to know:

  • Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
  • JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
  • The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.