World Bank Low: Closed consultation on the disclosure of cryptoasset exposures

On 31 January 2024, the Basel Committee on Banking Supervision closed its public consultation on proposed amendments to its cryptoasset standard, initially set in December 2022. The amendment introduces modifications to the methodology employed by banks for the assessment of stablecoins with regard to their inclusion in the Group 1b category. The amendments focus on the composition of reserve assets and statistical testing for market value stability. In addition, technical amendments are proposed with the objective of ensuring a consistent understanding and application of the standard. The Committee has conducted a review and has determined that cryptoassets utilising permissionless blockchains should not be included in Group 1 due to the inherent risks associated with such assets. Moreover, the amendments include enhanced criteria for the quality and maturity of reserve assets, with the objective of ensuring liquidity and stability. Additionally, there is a requirement for independent audits.