Basel revises bank crypto capital plan to include blockchain

30/6/2022 1:54:00 PM

Basel revises bank crypto capital plan to include blockchain

Basel revises bank crypto capital plan to include blockchain

LONDON : Banks should take a conservative approach to setting aside capital to cover risks from 'unbacked' crypto assets on their books, the global Basel Committee of banking regulators said in proposals on Thursday which now also cover blockchain.Cryptoassets have tumbled in value in recent weeks partly

LONDON : Banks should take a conservative approach to setting aside capital to cover risks from"unbacked" crypto assets on their books, the global Basel Committee of banking regulators said in proposals on Thursday which now also cover blockchain.

Cryptoassets have tumbled in value in recent weeks partly triggered by the collapse of terraUSD, a stablecoin whose value was derived by complex algorithmic processes.As a result, regulators like the Basel Committee are worried about the potential risks to the financial system from the lightly regulated crypto sector even though it is still small relative to the size of global stock, bond and derivatives markets.

Read more: CNA »

Three Chinese companies plan Swiss, London listingsSHANGHAI : Three Chinese companies - a chip maker, a beverage producer and an electronic firm said on Wednesday they plan to issue Global Depository Receipts (GDRs) on overseas stock exchanges, in a bid to broaden their financing channels and ramp up global expansion.Will Semiconductor Co Ltd Shanghai and

Singapore-based crypto hedge fund Three Arrows Capital has entered liquidation, source saysLONDON — Crypto hedge fund Three Arrows Capital (3AC) has entered liquidation, a person familiar with the matter told Reuters on Wednesday (June 29), in the latest sign of the market downturn hurting the crypto industry. Singapore-based 3AC is one of the higher profile crypto investors to have run into difficulties following the sharp sell-off in the market for digital... Here goes 'crypto Disneyland' 🤣🤣🤣

Crypto hedge fund Three Arrows Capital has entered liquidation, source saysLONDON : Crypto hedge fund Three Arrows Capital (3AC) has entered liquidation, a person familiar with the matter told Reuters on Wednesday, in the latest sign of the market downturn hurting the crypto industry.Singapore-based 3AC is one of the higher profile crypto investors to have run into difficulties Gone to bits

Crypto hedge fund Three Arrows Capital has entered liquidation, source saysCrypto hedge fund Three Arrows Capital (3AC) has entered liquidation, a person familiar with the matter told Reuters on Wednesday, in the latest sign of the market downturn hurting the crypto industry. Singapore-based 3AC is one of the higher profile crypto investors to have run into difficulties following the sharp sell-off in the market for digital currencies seen in recent months. Crypto broker Voyager Digital issued 3AC with a default notice on Monday after it failed to make payments on a loan of 15,250 bitcoin (approximately $324 million) and $350 million worth of USDC, a stablecoin.

LinkedIn LONDON : Banks should take a conservative approach to setting aside capital to cover risks from"unbacked" crypto assets on their books, the global Basel Committee of banking regulators said in proposals on Thursday which now also cover blockchain.LinkedIn SHANGHAI : Three Chinese companies - a chip maker, a beverage producer and an electronic firm said on Wednesday they plan to issue Global Depository Receipts (GDRs) on overseas stock exchanges, in a bid to broaden their financing channels and ramp up global expansion.June 30, 2022 published at 1:20 AM A small toy figure and representations of the virtual currency bitcoin stand on a motherboard in this picture illustration taken on May 20, 2021..

Cryptoassets have tumbled in value in recent weeks partly triggered by the collapse of terraUSD, a stablecoin whose value was derived by complex algorithmic processes. As a result, regulators like the Basel Committee are worried about the potential risks to the financial system from the lightly regulated crypto sector even though it is still small relative to the size of global stock, bond and derivatives markets. Sunwoda Electronic Co Ltd said in a statement its board of directors have approved the plan to float on the SIX Swiss Exchange or the London Stock Exchange, while the specifics would be decided by capital markets, regulatory developments and the real conditions of the company. The proposals on Thursday mark Basel's second public consultation on cryptocurrencies, which would require banks to take a conservative stance when setting aside capital for crypto holdings. Crypto broker Voyager Digital issued 3AC with a default notice on Monday after it failed to make payments on a loan of 15,250 bitcoin (approximately US$324 million) (S$452 million) and US$350 million worth of USDC, a stablecoin. The Committee's proposal said cryptoassets which are not backed by assets like traditional currencies, and stablecoins that do not have effective stabilisation mechanisms, should continue to be subject to a conservative prudential treatment with regard to capital set aside for potential losses. Will Semiconductor and Eastroc Beverage said they were responding to government calls to strengthen the links between Chinese and European capital markets, and that listing overseas would help expand its financing options and improve corporate governance. It also proposed a new limit on gross exposures to such cryptoassets.

In June last year, Basel had published a first consultation on the crypto sector, which proposed that banks must hold enough capital to cover losses on any bitcoin holdings in full. Source: Reuters. Top cryptocurrency bitcoin has plunged some 37 per cent in June, trading around US$20,000 on Wednesday, compared with its all-time high of US$69,000 in November 2021. Basel said it was keeping the basic structure of that first proposal, which divided cryptoassets two broad groups, one including stablecoins, and the other higher risk cryptoassets, which would require the more conservative capital treatment. The latest Basel proposals include new elements such as extra capital to cover"evolving risks" from distributed ledger technologies or blockchain, which underpins cryptoassets. The committee said it will continue to monitor market developments to see if the proposals need toughening further. 3AC did not immediately respond to a request for comment. The committee, made up of banking regulators from the world's main financial centres, said it plans to finalise the rules by year-end.

Source: Reuters .