October 19, 2020

Basel Committee to establish coverage levels for cryptocurrency risks

Basel Committee to establish coverage levels for cryptocurrency risks

The Basel Committee on Banking Supervision will determine how much capital lenders will need to cover the risks associated with cryptocurrencies.

The global banking regulator wantsfinancial institutions were prudent and cautious about working with virtual assets that did not have physical support. At a meeting in Madrid, the organization confirmed its plans to publish recommendations for the proper management of risks in this area.

In the process of studying the crypto industry, the Basel Committee will request stakeholder opinions on various issues related to the specifics of the cryptocurrency market, and take into account current initiatives.

In addition, an assessment will be made.the use of artificial intelligence and machine learning in financial services, as well as the dependence of banks on cloud technologies provided by third parties.

The rules, which will be described in the new consultation document on adjusting the credit score, will enter into force from 2022.

Earlier, the Basel Committee has already expressed its concern about the growing influence of crypto assets on the global financial system.

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