January 29, 2023

The Basel Committee has set a limit on the share of crypto assets in the capital stock of commercial banks

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The Basel Committee has set a limit on the share of crypto assets in the capital stock of commercial banks

The Basel Committee of the BIS has finalized regulatory policy and has submitted a final proposal on limits on the amount of Tier 1 capital that banks can hold in bitcoin.

Basel Committee of the Bank for International Settlements(BIS) for Banking Supervision completed the development of additions to the unified regulatory policy of commercial banks. The BIS Working Group has recommended setting a cap on banks' Tier 1 capital held in bitcoin at no more than 2%.

The BIS proposal was approved by the Governing Groupand Heads of Central Bank Supervisors (GHOS), as well as the supervisory body of the Basel Committee, which is “the main developer of global standards for prudential banking regulation”.

The 2% limit is a compromise between the regulator and the banking industry. Initially, the BIS offer was limited to 1%, while commercial banks insisted on 5%.

The other day, BIS conducted a study of the motives of cryptocurrency investors. Experts came to the conclusion that the main reason for investing in digital assets was the thirst for profit, and not a rebellion against the banking system.