A new report on cryptocurrencies came from the Bank for International Settlements (BIS), which is skeptical of Bitcoin (BTC) and cryptocurrencies.
Accordingly, the Basel Committee on Banking Supervision (BCBS) of the Bank for International Settlements has introduced new regulations for banks holding Group 2 crypto assets, including XRP, Bitcoin and Ethereum (ETH).
According to the latest report, it was stated that cryptocurrencies in this group are considered more risky due to their volatility and these assets now face strict limitations.
According to the report, a bank's total exposure to Tier 2 assets should not exceed 1% of its Tier 1 capital.
These regulations, which will be valid from January 1, 2026, aim to reduce risks arising from fluctuations in the crypto market.
Accordingly, starting January 1, 2026, banks will be required to submit both qualitative and quantitative reports detailing their cryptocurrency-related activities and the liquidity required to ensure stability.
The new guidelines also include regulations regarding stablecoins. The guidelines introduced by the new report support the use of stablecoins that will receive preferential regulatory treatment, such as JPMorgan's JPMCoin.
At this point, these guidelines mean that stablecoins issued on permissionless blockchains, such as Tether's USDT and Circle's USDC, may face increased scrutiny.
The #BaselCommittee has published its final disclosure framework – including a set of standardised tables and templates – for banks’ cryptoasset exposures, to be implemented by 1 January 2026. Read more here: https://t.co/EL2aad1YgP pic.twitter.com/dcNDOwKH69
— Bank for International Settlements (@BIS_org) July 17, 2024
*This is not investment advice.
