Basel Oversight Body Backs Standards for Banks’ Crypto Exposure
- Endorsement billed as step toward mitigating bank-sector risks
- Crypto volatility writ large in 2022 by bankruptcies like FTX
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The body overseeing the Basel Committee on Banking Supervision endorsed global prudential standards for banks’ exposure to crypto assets, seeking to counter threats from virtual coins.
The backing from the Group of Central Bank Governors and Heads of Supervision is an important step toward “mitigating risks to banks” from digital tokens, Tiff Macklem, chair of the oversight body and governor of the Bank of Canada, said in a statement on Dec. 16.