CONSULTATION RESPONSE
x
BCBS consultation on Prudential treatment of cryptoasset exposures: EBF response
BRUSSELS, 10 September 2021 – The European Banking Federation has responded to the consultation of the Basel Committee on Banking Supervision on the prudential treatment of cryptoasset exposures.
During the development of the regulatory framework, it will be important to ensure that the following g considerations are taken into account:
- The goal should be to ensure a level playing field between the banking sector and market participants who are active in the issuance and trading of cryptoassets, but who are not within the scope of prudential regulation
- Therefore, it is important that the framework sets the right incentive for banks to engage with cryptoassets, which will have a positive impact on the development of the market
- Furthermore, the objective should be to avoid that those activities related to cryptoassets are being shifted into unregulated sectors, which do not have to adhere to the same high regulatory standards as banks
- Overall, it will be important to use the principle of “same risk, same activity, same treatment” as the guiding principle for all further discussions, which would ensure that cryptoassets that have the same risk as traditional assets are treated in the same way. For this it will be important to develop a more granular and differentiated classification of cryptoassets, which better reflects the diverse nature of those assets
- Lastly, the EBF encourages the Basel Committee to take into due consideration the discussion taking place in its member jurisdictions, such as the discussion in the EU around the MiCA proposals
FOR MORE INFORMATION:
Lukas Bornemann, Policy Advisor – Prudential Policy & Supervision l.bornemann@ebf.eu
ABOUT THE EBF:
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere. Website: www.ebf.eu
Subscribe to the EBF Weekly + FinReg Agenda
Every Friday at noon you can receive the EBF Weekly + Financial Regulation Agenda. This agenda presents an overview of upcoming European and international meetings and conferences in financial regulation, as well as important general financial and economic events and key EBF meetings for the week ahead. CLICK HERE TO SUBSCRIBE
Subscribe to the EBF Morning Brief
The EBF Morning Brief is published Monday through Friday morning and brings you the top banking headlines, relevant announcements from the EU institutions and the latest from the EBF and its members, national banking associations in 32 countries in Europe. CLICK HERE TO SUBSCRIBE
EU Banks for Ukraine
