Banks face first global cryptocurrency rules in wake of FTX collapse

Basel Committee set to require that crypto holdings be backed by capital

Banks will be required to set aside traditional capital equivalent to the value of cryptocurrency holdings under upcoming rules from the Basel Committee on Banking Supervision. © Reuters

NATSUMI IWATA, Nikkei staff writer

December 10, 2022 03:01 JST

TOKYO -- For the first time ever, banks will be required to follow international regulations regarding the ownership of cryptocurrencies to better safeguard the industry against the volatile assets.

The Basel Committee on Banking Supervision, the Switzerland-based global forum for crafting industry rules, is poised to instruct lenders to set aside capital that matches the value of certain cryptocurrencies in their holdings. The new directives are to be finalized by the end of the month.