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Banks' capital requirements for exposure to crypto-assets consulted on by Basel Committee

( December 12, 2019, 10:48 GMT | Official Statement) -- Banks have been issued a consultation paper by the Basel Committee on Banking Supervision on their prudential treatment for exposure to crypto-assets. The paper asks for views on the design of higher capital and liquidity requirements for banks' exposures to virtual assets, with a potential different treatment for high-risk crypto-assets. The Basel Committee is also looking for views on the features and risks of the assets to inform a new prudential treatment for banks that are directly or indirectly exposed to virtual currencies. That includes multiple ways in which financial institutions are impacted by crypto-assets, including issuing them directly, or lending to individuals, corporates or financial institutions to allow them to invest in crypto-assets.Statement follows. Consultation attached....

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