Basel Committee Calls for Crypto Asset Regulation Review

The Basel Committee on Banking Supervision Chair, Erik Thedéen, is urging a re-evaluation of current regulations governing banks’ exposure to crypto assets. In an interview with the Financial Times, Thedéen highlighted that the existing framework, which assigns a significant risk weight of up to 1250% on certain crypto asset holdings, was established before the market reached its current maturity. This framework is seen as outdated and inconsistent by major regulatory bodies like the US and UK who have chosen not to adopt it in its current form.