A group of central bankers and supervisors have endorsed new rules for how much capital banks should hold to cover crypto assets on their books from 2025 laid out by the Basel Committee of global banking regulators.
The backing on Friday of the rules, come after a turbulent couple of years for digital asset markets.
The endorsement by The Group of Central Bank Governors and Heads of Supervision (GHOS) is “an important milestone” in developing a global set of rules to limit the risk crypto assets pose to banks, Tiff Macklem, chair of the GHOS and governor of the Bank of Canada said.
They will form a new section of the Basel Framework, which global regulators have agreed to put in place by the start of January 2025, the statement said. The GHOS is the oversight body of the Basel Committee of global supervisors.
“It is important to continue to monitor bank-related developments in cryptoasset markets. We remain ready to act further if necessary,” Macklem said in the statement.
Authorities around the world have stepped up calls for crypto regulation this year, following sharp falls in the price of cryptocurrencies and the collapse of various crypto firms, which left some customers unable to withdraw their funds.
The Basel Committee published its first consultation on the crypto sector in June 2021, proposing that banks must hold enough capital to cover losses on any bitcoin holdings in full.