According to a statement sent through email on Friday, the Basel Committee on Banking Supervision (BCBS) has <a href="https://www.bis.org/bcbs/publ/d545.pdf" target="_blank" rel="nofollow noopener">approved</a> the guidelines for the global adoption of <a href="https://www.cryptoknowmics.com/news/amber-group-acquires-300-million-via-fundraising">crypto</a> banking to take effect on January 1, 2025.
<h2>BCBS Approves Adoption of Crypto Banking Rules</h2>
The committee, which is the main body responsible for setting worldwide standards for the prudential regulation of banks, said in an accompanying paper that a bank's exposure to specific <a href="https://www.cryptoknowmics.com/news/uk-government-amends-finance-regulatory-bill-to-add-new-crypto-rules">crypto assets</a> should not surpass 2% and should typically be lower than 1%. These specific assets are conventional assets that have been tokenized, such as <a href="https://www.cryptoknowmics.com/news/what-if-nfts-could-drive-tangible-positive-benefits-for-the-environment">non-fungible tokens</a>, <a href="https://www.cryptoknowmics.com/news/truelayer-to-support-coinbase-payments-and-focus-on-stablecoins">stablecoins</a>, and unsupportable crypto assets that don't fit into any one category.

According to the present Basel Framework, the assets from the list above that fit the prerequisites are required to meet capital considerations based on the risk weights of fundamental exposures.
<h2>Support by GHOS</h2>
An earlier group of eight conventional banking lobby organizations had written to the committee arguing that a 1% restriction on banks may be too onerous and prevent <a href="https://www.cryptoknowmics.com/news/wells-fargo-and-hsbc-expand-dlt-solution-to-include-offshore-yuan">distributed ledger technology</a> advancements. There is more freedom to operate now.

Tiff Macklem, head of the GHOS, the committee's supervisory body, stated that today's support by the GHOS (Group of Central Bank Governors and Heads of Supervision) represents a key milestone in building a worldwide regulatory framework for minimizing risks to banks from crypto assets.
<h2>Redemption Risk Test and Basis Risk Test</h2>
The committee's categorization standards include ensuring that <a href="https://www.cryptoknowmics.com/news/consensys-partners-with-paypal-to-offer-easy-way-to-buy-crypto">crypto</a> fulfills a redemption risk assessment and a basis risk test.

The purpose of the redemption risk assessment, according to the paper, is to make sure that the reserve assets are enough to allow for the perpetual redemption of the crypto assets. The basis risk test, on the other hand, aims to verify that the holder of a crypto asset may trade it in the market for an amount that roughly reflects the peg value.

BCBS Approves Adoption of Global Crypto Banking Regulations by 2025

Basel Committee on Banking Supervision (BCBS) has approved the guidelines for the global adoption of crypto banking to take effect on January 1, 2025.

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BCBS Approves Adoption of Global Crypto Banking Regulations by 2025

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