Basel Committee proposes illustrative prudential framework for crypto assets
Holdings of crypto assets would be split between banking book and trading book
Crypto assets could be subject to a “full deduction” from Common Equity Tier 1 (CET1) capital if held in the banking book, under a hypothetical prudential framework set out by the Basel Committee on Banking Supervision.
In a discussion paper, the BCBS outlines what a prudential framework could look like for high-risk crypto assets. Stakeholders have until March 13, 2020 to respond to the paper.
In the proposed example, direct holdings of crypto assets would be allocated to the banking book
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