There has been a new move regarding virtual currencies from the Bank for International Settlements (BIS), which is skeptical about Bitcoin (BTC) and virtual currencies.
The Basel Committee on Banking Supervision (BCBS), the Bank for International Settlements, plans to review its 2022 guidelines for banks’ holdings of cryptocurrencies, Bloomberg reported.
In response, Bloomberg reported that BCBS plans to change banks’ crypto exposure rules effective in 2022.
The background to BCBS’ review of virtual currency rules is stated to be the rapid growth of the stablecoin market and recent changes in U.S. laws.
According to BCBS’ current regulations, stablecoins are currently classified as high-risk assets, along with Bitcoin (BTC) and Ethereum (ETH), but this classification is expected to be relaxed in the new regulations.
The 2022 crypto guidance will be updated to be more positive next year, as most banks currently interpreted the previous guidelines issued in 2022 as a signal to move away from crypto altogether.
Banks may soon take a more flexible stance towards cryptocurrencies as BCBS prepares to revise its guidance on cryptocurrencies.
*This is not investment advice.
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