The Basel Committee agreed to consult on targeted revisions to standards on cryptoasset and interest rate risk in the banking book and to take steps to address window-dressing in relation to the G-SIB framework.
The Basel Committee on Banking Supervision met virtually on 5 and 7 December to discuss a range of policy and supervisory initiatives.
It agreed to consult on potential targeted revisions related to the criteria for stablecoins to receive a preferential "Group 1b" regulatory treatment. The Committee will also consult on "various technical amendments to help promote a consistent understanding of the standard."
The Committee concluded that cryptoassets that use permissionless blockchains "create risks that cannot be sufficiently mitigated at present" and therefore agreed to retain the existing treatment for such cryptoassets. The consultation paper will be published this month.
The Committee also reviewed the risks arising from banks providing cryptoasset custody services. It said such services "raise various operational risks for banks, which reinforces the importance of full implementation of the Principles for operational resilience and those for the sound management of operational risk."
The Committee will continue to monitor the evolution of banks' cryptoasset custody activities and, taking account of market developments, will consider whether any additional work may be needed.