The Basel Committee on Banking Supervision (BCBS) – the global banking supervisory authorities – is working to find out the amount of capital in possession of lenders, sufficient to financially secure any risks coming from conducting crypto-related activities.

Reported by Business Reporter on November 7, the Basel Committee – with members are lawmakers based in the US, Europe and Japan – is putting in efforts to establish a document on the prudential treatment of cryptocurrency. 

At the conclusion of a conference held in Madrid, the committed claimed that banking entities should take into account the risks surrounding digital coins when considering crypto-asset exposure. 

“The Committee reiterated its view that the prudential treatment of banks’ crypto-asset exposures should appropriately reflect the high degree of risk of crypto assets.”

The committee further revealed that – considering all the current actions taken within the crypto scene – it will gather the perspective, concerning the afore-mentioned prudent treatment of crypto assets.

The Basel Committee claimed that it will put under thorough analysis the dependence of banks, on unregistered third-party service providers, nominally for cloud computing and data. The final version of the document will be in effect starting January 2022.