Moving beyond recent concerns expressed by the Financial Stability Board on “decentralized” finance, the Basel Committee is soliciting views on a preliminary assessment of crypto-asset risk and the capital, liquidity, and prudential standards it warrants for banking organizations. Although framed as only a request for general comment, the paper specifies numerous risk-management and supervisory protocols Basel believes should already be in place at banks with direct or indirect crypto exposures. While seeming to differentiate between high-risk exposures and others likely to be considerably less problematic, the overall risk-management framework appears to apply to all crypto exposures.
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