Basel Committee on Banking Supervision (BCBS)

TradingKeyTue, Apr 15

The Basel Committee on Banking Supervision (BCBS), based in Basel, Switzerland, is an international authority focused on setting standards and ensuring financial stability. It comprises 45 members from 28 countries worldwide, primarily consisting of central banks and similar regulatory bodies.

Also referred to as the Committee, it serves as an informal platform for discussing and reaching consensus on global banking standards related to capital, liquidity, and funding. However, the agreements made by the Committee do not translate into formal regulations or laws.

The Committee's main objective is to understand supervisory issues within banks and to develop strategies for enhancing banking regulation on a global scale.

In terms of cryptocurrency asset regulation, the Committee provides recommendations to banks on how to mitigate their exposure to crypto asset risks. This includes varying capital requirements for different categories of cryptocurrencies, such as stablecoins, tokenized stocks, and non-stablecoin, non-tokenized cryptocurrencies like Bitcoin (BTC) and most altcoins.

The original 10 members of the Committee included Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland, the United Kingdom, and the United States.

Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

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