Following a preliminary consultation proposal in June 2021, the Basel Committee on Banking Supervision (BCBS) published a second consultation for its position on the prudential treatment of crypto-asset exposures on 30 June 2022. This document clearly shows the banking sector’s direction towards crypto-assets and what this should imply for the market more generally.

Between the necessity to maintain financial stability and the need for the banking industry to experiment with this new asset class, Adan encourages the adaptations made by the Basel Committee since its first consultation but considers that certain obstacles remain for the traditional financial world to fully embrace this industry.

While the role of the banking sector will be fundamental to the mass adoption of crypto-assets, more granularity and room for experimentation for banks should emerge in this paper.

Adan – Response to BCBS Consultation – Prudential treatment of crypto-asset exposures