BIS Issues New Crypto Holding Requirements for Banks

IconCryptoNewsTerminal Staff18 Jul, 2024

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BIS Issues New Crypto Holding Requirements for Banks

The Bank for International Settlements (BIS) has issued new requirements for banks holding crypto assets. According to Cryptobasic, these requirements aim to mitigate risks associated with crypto volatility and market manipulation. Key takeaways include: Cryptocurrency exposures should not exceed 1% of a bank's Tier 1 capital. No single crypto-asset exposure may exceed 5% of Tier 2 capital. * These requirements will be phased in by January 1, 2026. The BIS emphasizes the need for banks to have robust risk management frameworks, including stress testing and scenario analysis, to address crypto-related risks effectively. These measures are crucial as the crypto market continues to evolve and potential systemic risks emerge.

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