The chairman of the Basel Committee on Banking Supervision called for a revision of capital requirements for banks holding cryptocurrencies, according to the Financial Times. The remarks highlight concerns that current rules may not reflect the unique risks of digital assets.
Basel’s current framework treats crypto holdings as high-risk exposures, requiring banks to hold significant capital against potential losses. The chair argued that these rules could discourage responsible adoption of digital assets and limit banks’ ability to support client demand. A reworked approach could better balance financial stability with innovation, providing clarity on appropriate risk weights and reporting standards.
Banking regulators, industry participants, and policymakers will be closely watching any proposed changes, as revisions could influence lending practices, investment strategies, and compliance frameworks across jurisdictions. The discussion underscores the ongoing challenge of integrating cryptocurrencies into traditional financial systems while managing systemic risk.
Source: Financial Times.
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