The Adan responds to the Basel Committee’s consultation on prudential standards

Following a preliminary consultation paper in June 2021, the Basel Committee on Banking Supervision (BCBS) published a second consultation paper on June 30, 2022, regarding its position on the prudential treatment of crypto-asset exposures. This document clearly illustrates the banking sector’s shift toward crypto-assets and what this is likely to mean for the market as a whole.

Balancing the need to maintain financial stability with the banking sector’s need to explore this new asset class, ADAN supports the adjustments made by the Basel Committee since its initial consultation but believes that certain obstacles remain to the traditional financial sector’s full adoption of this industry.

While the banking sector will play a pivotal role in the widespread adoption of crypto-assets, this document should provide banks with greater flexibility and scope for experimentation.