Regulation
Basel Crypto Rules for Banks Postponed to 2026 – Ledger Insights
The Basel Committee, the global reference body for banking regulation, has delayed the implementation of the Basel rules for crypto-assets by one year, i.e. until January 2026. Its definition of crypto-assets is broad and includes cryptocurrencies, stablecoins and tokenized securities such as stocks. and bonds.
“The new implementation date will help ensure that all members are able to implement the standard fully, timely and consistently,” said the Basel Committee supervisory body.
The first series of the rules on crypto-assets have been finalized at the end of December 2022. However, a year later, the Committee consulted on the proposals for substantial changes. The Committee plans to review the rules later this year.
The proposed changes strengthen the requirements for the classification of crypto-assets in low-risk Group 1. Tokenized securities usually fall into this group. According to the draft amendment, any security token issued on a public blockchain automatically falls into the higher risk Group 2, which has prohibitive capital requirements. For example, US banks should set aside one dollar of capital for every dollar of tokenized securities they hold on a public blockchain. The same applies to all other digital securities that do not meet the risk requirements set out in the standard.
Industrial bodies GFMA, FIA, IIF and ISDA oppose this change. They are also unhappy with another proposal regarding “infrastructure risk.” Prior to the publication of the first standard, the Committee had proposed that all Group 1 assets, including digital or tokenized securities, be subject to a 2.5% infrastructure risk surcharge. The final 2022 standard removed the add-on, but the 2023 proposed changes reintroduce a 0% attenuated version. However, it gives local regulators leeway to increase the percentage.
Industry bodies want any reference to infrastructure risk to be removed. They also addressed several other proposed changes.
Meanwhile, Erik Thedéen, governor of the Swedish Riksbank, will become the new chairman of the committee in June this year. He will replace the Spaniard Pablo Hernández de Cos, who has been in office for more than five years.