The Basel Committee will present the second version of the recommendations on the regulation of cryptocurrencies

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Basel Committee on Bankingsupervision of the Bank for International Settlements (BIS) plans to release a second, even more “conservative” version of recommendations for regulating cryptocurrencies.

The first version of the recommendations was released inmid 2021. Committee members divided digital assets into two groups: the first included tokenized traditional assets and stablecoins, and the second included all other tokens and cryptocurrencies. At the same time, for the second group it was recommended to have full security in banks. At the time, several European and American financial institutions opposed the Basel rules.

Looks like the Terra ecosystem is collapsingdid not pass the committee. At a meeting held on May 27, the organization’s participants discussed the risks of cryptocurrencies and announced plans to provide a new version of the rules for the “prudential approach to cryptocurrency risks” for banks.

“Recent events have further emphasizedthe importance of having a global prudential framework to mitigate the risks associated with crypto assets. Based on feedback from external stakeholders, the committee plans to issue a further consultation document next month and complete the prudential regime by the end of the year,” the press release emphasizes.

Let us recall that the Basel Committee onbanking supervision includes representatives of central banks and regulators from 28 countries. Earlier, the Managing Director of the International Monetary Fund, Kristalina Georgieva, said that stable cryptocurrencies that are not backed by real assets are extremely similar to pyramid schemes.