News

Stablecoins Receives A Consistent Global Regulatory Treatment

A Swiss-based group that establishes international banking standards has issued fresh recommendations for banks to manage their exposure to digital assets, rescinding prior draft regulations for stablecoins.

The Basel Committee on Banking Supervision published a revised version of its proposed guidelines for banks to follow when handling digital assets, including “tokenized traditional assets, stablecoins, and unbacked crypto assets,” in anticipation of the completion of a new framework for banking standards by 2025.

The new draft allows stablecoins to be stress-tested based on whether they could be sold for a price that closely tracks its peg value and incorporates stakeholder feedback and recent developments in the cryptocurrency markets, such as the algorithmic stablecoin crash last spring.

It was advised that any testing of stablecoin exposure be done in addition to, not in substitute of, the existing regulatory capital and liquidity requirements put on traditional financial institutions.

Along with additional guidelines, such as standards for identifying whether digital assets are safer than others, banks would also be required to limit their exposure to specific tokens to less than 1% of their Tier 1 capital, which represents their fundamental equity holdings.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Thana

Coincu News

Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.

Recent Posts

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

28 minutes ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

1 hour ago

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

3 hours ago

Bonk’s ICO Was Just the Start: Why BTFD Coin’s Stage 7 Price Rollback Is Your Second Shot at Crypto Glory

BTFD Coin is offering a chance to relive the glory days of meme coin investing,…

4 hours ago

Decoding BDAG’s AMA: A Blueprint for Scalable Blockchain and Enhanced Community Ties

Explore key takeaways from BlockDAG’s AMA, showcasing strides in scalability, growth of the ecosystem, and…

4 hours ago

Best Cryptos with 1000X Potential: Qubetics Revolutionises Blockchain as Polkadot and Cosmos Shape the Future

Discover why Qubetics, Polkadot, and Cosmos are the best cryptos with 1000X potential, offering innovation,…

8 hours ago

This website uses cookies.