Global regulators set to finalise crypto bank capital rules by year-end

The Basel Committee is set to finalise the prudential treatment by year-end on how much capital banks should hold to cover crypto assets on their books. The committee earlier proposed that banks set aside enough capital to cover losses on any bitcoin holdings in full. Earlier in May, TerraUSD, a stablecoin tied to the US dollar, collapsed. The committee said that recent developments have further highlighted the importance of having a global minimum prudential framework to mitigate risks from crypto assets. The committee also agreed to finalise a set of principles for supervising climate-related financial risks at banks. It also agreed that the eurozone is one domestic jurisdiction when it comes to calculating an extra capital buffer for large, globally systemic banks that are based there.