The Limitation Of Crypto Assets In Banks: Basel Committee Report

Basel Committee published the final version of its second report on the limitation of crypto assets in banks in December 2022¹. The first noticeable element in the report is a categorization of crypto assets as Group 1 and Group 2.

Committee, considering this separation, acknowledges that crypto assets within the scope of Group 2 are riskier and therefore, as a rule, the percentage of Group 2 crypto assets should not exceed 1% of the total assets of banks and if exceeds that rate, Committee proposed to apply more restrictive rules of Group 2b for the exceeding part. In addition, it is set forth that if the percentage of Group 2 crypto assets exceeds 2%, restrictive rules of Group 2b should be applied for whole crypto assets in banks. In any case, it is likely that banks will be subject to severe sanctions if they hold more than 2% of Group 2 crypto assets. In fact, this percentage was 1% in the previous report, so it seems Basel Committee took the comments from the