What is BASEL Norms ? BASEL committee on banking supervision | bank for international settlements |
The Basel Committee on Banking Supervision (BCBS), which develops international banking standards, issued a statement in which it expressed its concern about the growing impact of cryptoassets on the global financial system and the future negative impact of these changes..
The organization operates under the Bank for International Settlements, which includes central banks of 60 countries of the world. Published today document it is said that although the influence of the cryptoasset market is still insignificant, further growth may destabilize the financial system and increase the level of banking risks.
BCBS also emphasizes that cryptocurrencies are not capable of performing the basic functions of money, so they cannot be used as a medium of exchange and store of value. By adding that they are not supported by any government or government agency, and are not legal tender.
In addition to high volatility and associated risks, the Basel Committee speaks of the immaturity of this asset class, pointing to the lack of uniform standards and continuity of development. Therefore, any bank that decides to work with cryptoassets is recommended to carefully analyze potential threats and develop mechanisms to combat them, make sure that it has the necessary technical knowledge, ensure the disclosure of financial information at the request of regulatory authorities, inform customers about all possible risks, comply with all legal regulations and provide guarantees for the services provided.
BCBS will continue to monitor the development of the cryptocurrency market and plans to develop specific instructions for banks on this issue.
We also reported earlier that The Central Bank of Russia will restrict the purchase of digital assets for unqualified investors.
text: Ivan Malichenko, photo: Getty Images