BIS crypto banking rules now due this year

BIS crypto banking rules now due this year

A Basel committee cited the recent turmoil to push its plans, which had previously faced opposition from major lenders such as JPMorgan Chase.

The Basel Committee on Banking Supervision has said it will finalize standards for banks' exposure to cryptocurrencies later this year, taking recent market woes as an opportunity to push forward with the controversial plans.

The global banking standard setter proposed rules last year that would require lenders to hold $1 in capital for every $1 in cryptocurrencies. That was met with significant opposition from companies such as JPMorgan Chase and Deutsche Bank, which saw the standard as overly burdensome.

"Recent developments have once again highlighted the importance of a minimum global regulatory framework to mitigate the risks of cryptoassets," the committee said in a statement, likely referring to the recent collapse of Terra's USD stablecoin.

"The Committee plans to publish a further consultation paper in the coming months with a view to finalizing the regulatory treatment towards the end of the year," it said. Since 2008, the Basel-based organization has steadily tightened capital requirements for banks to avoid a repeat of the financial crisis.