MEXCBasel Committee Proposes Highest Risk Weightage for Bitcoin
The Basel Committee on Banking Supervision that comprises 45 members from 28 jurisdictions today proposed two sets of regulations for the crypto assets. The new proposals give a conservative prudential treatment to crypto-assets such as Bitcoin without any real-world backing citing high-risk factors.
The proposal divided the crypto assets into two broad categories first being stablecoins and real-world backed security tokens that might fall under the existing Basel Framework with some modifications. On the other hand crypto assets such as bitcoin, are subject to a new conservative prudential treatment. The committee has opened suggestions on the proposal until September 10.
The Committee proposed that banks assign a risk weighting of 1,250 percent to bitcoin and certain other cryptocurrencies. This means banks may need to hold actual dollars for every dollar of bitcoin.
The risk weightage would range from 0% to 1,250% depending on the type of assets. The official press release read,
“The capital will be sufficient to absorb a full write-off of the crypto-asset exposures without exposing depositors and other senior creditors of the banks to a loss,”
How would Conservative Approach by Basel Committee Impact Bitcoin?
The high-risk weightage for Bitcoin might seem conservative but on the bright side, this proposal recognizes bitcoin as an asset class by the world’s largest regulatory committee of banks. It is also important to note that the proposal is in the preliminary stage and has invited suggestions.
The official proposal also noted that despite the limited use of crypto assets in the banking sector it is a rapidly growing ecosystem that could pose a risk to the financial stability of the banking sector. The proposal by the Banking Supervision Committee comes on the heels of El Salvador passing a bill to make Bitcoin a legal tender in the country.
- Metamask Airdrop Countdown Begins as Wallet Team Registers Token Claim Domain
- $2.5T Citigroup Partners With Coinbase to Enable Stablecoin Payments
- Who Will Be the Next Fed Chair? Scott Bessent Confirms Final Five Candidates
- Mt. Gox Delays Repayments to 2026 as Trump-Backed American Bitcoin Adds 1,414 BTC
- Crypto ETFs Attract $1B in Fresh Capital Ahead of Expected Fed Rate Cut This Week
- Polymarket Traders Bet Ethereum Price to Hit $5,000 as Bullish Pattern Forms
- Dogecoin Price Prediction As Whales Scoop Over $300 Million- Is A Bull Run Ahead?
- Pi Coin Price Jumps 24% as 10M Tokens Exit Exchanges – Can Bulls Sustain the Momentum?
- Bitcoin Price Prediction If President Trump Announces Deal with China on October 30th- Can BTC Break $125k?
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
