Bitcoin part of highest risk category in Basel’s new bank capital plan
The Basel Committee on Banking Supervision proposed tough requirements for banks that want to hold cryptocurrencies like Bitcoin.
The Basel Committee on Banking Supervision (BCBS), a global committee of banking supervisors and central banks, has proposed new requirements for banks that want to hold cryptocurrencies like Bitcoin (BTC).
In a consultation paper published Thursday, the committee provided preliminary proposals for the prudential treatment of crypto exposure by banks.
According to the paper, this would ensure that there is sufficient capital to absorb a full write-off of crypto asset exposures without exposing depositors and other senior creditors of the banks to a loss.