On 12 December 2019, the Basel Committee on Banking Supervision (Basel Committee) published a discussion paper seeking views on a range of issues related to the prudential regulatory treatment of crypto-assets.

The responses to the discussion paper will inform the Basel Committee’s development of a prudential treatment for crypto-assets at large, including for crypto-assets that are issued by regulated financial institutions, or that make use of stabilisation tools. The Basel Committee is continuing to assess the appropriate prudential treatment for such types of crypto-assets, and will consult on any specific measures.

Should the Basel Committee decide to specify a prudential treatment of crypto-assets, it will issue a consultation paper detailing its proposals and seek further input from stakeholders. Any specified treatment would constitute a minimum standard for internationally-active banks. Jurisdictions would be free to apply additional and/or more conservative measures if warranted. As such, jurisdictions that currently prohibit their banks from having any exposures to crypto-assets would be deemed compliant with any potential global prudential standard. More generally, the discussion paper should not be interpreted as an endorsement or support by the Basel Committee for any specific existing or planned crypto-asset.

The deadline for comments on the discussion paper is 13 March 2020.