Proposing changes to stablecoin risk standards: Basel Committee on Banking Supervision | CoinDesk JAPAN

In a consultation document released on December 14th, the Basel Committee on Banking Supervision (BCBS) stated that stablecoins are cheaper than unbacked crypto assets (virtual currencies) such as Bitcoin (BTC). We proposed revising the standards that would allow it to be treated as a risk.

CoinDesk reported last week that the banking regulator is considering revising its classification criteria for stablecoins, which are crypto assets designed to hold value comparable to reserve assets like the U.S. dollar. The proposal released on the 14th details the proposed changes.

Standard-setter BCBS has previously taken a tough stance on cryptoassets, recommending a risk weight of up to 1,250% for free-floating cryptoassets like Bitcoin. In other words, banks must issue capital commensurate with their exposure. Additionally, banks cannot allocate more than 2% of their core capital to these risk assets. BCBS said in a statement that it does not intend to make any changes to these standards.

However, it states that cryptoassets with “effective stabilization mechanisms” are eligible for “Group 1b regulatory preferential treatment.” This means that stablecoins can apply “capital requirements based on risk weights of potential exposure as set out in the existing Basel framework” instead of the more stringent requirements set for things like Bitcoin. do.

To qualify for this regulatory benefit, stablecoins must be “always convertible into cash.” This ensures that “only stablecoins issued by supervised and regulated entities with strong redemption rights and governance are eligible,” BCBS said.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
| Image: The Basel Committee on Banking Supervision is headquartered at the Bank for International Settlements (BIS). (BIS)
｜Original text: Global Banking Regulator Proposes Changes to Criteria That Give Stablecoins Preferential Risk Treatment