{"id":573,"date":"2022-12-19T07:11:43","date_gmt":"2022-12-19T01:41:43","guid":{"rendered":"https:\/\/news.cetoex.com\/?p=573"},"modified":"2022-12-19T07:11:44","modified_gmt":"2022-12-19T01:41:44","slug":"bank-for-international-settlements-new-policy-allows-banks-to-hold-2-of-reserves-in-cryptocurrency","status":"publish","type":"post","link":"https:\/\/news.cetoex.com\/bank-for-international-settlements-new-policy-allows-banks-to-hold-2-of-reserves-in-cryptocurrency\/","title":{"rendered":"Bank For International Settlements New Policy Allows Banks to Hold 2% of Reserves in Cryptocurrency"},"content":{"rendered":"\n
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<\/a>Cetoex News – <\/strong>The Bank for International Settlements (BIS) has just released its\u00a0Prudential Treatment of Cryptoasset exposure\u00a0report for December 2022. In it, they have unveiled a new policy that allows banks to hold 2% of their reserves in cryptocurrency.<\/p>\n\n\n\n

This document has arrived following the summer\u2019s second consultation on the prudential treatment of banks\u2019 exposure to crypto assets. Therein, allowing a 1% reserve in crypto from banks. Feedback has led the BIS to this finalized \u201cprudential standard.\u201d The policy will go into effect on the first of January 2025 and outlines various facets of how crypto assets are to be categorized and treated.<\/p>\n\n\n\n

BIS Allow Banks Crypto Reserves<\/h2>\n\n\n\n

It has been a cold crypto winter that has perfectly capped a rather down year for the industry. As various digital assets were already performing poorly, the collapse of FTX<\/a> charted a turn for the worst. Now, the industry is attempting to move forward with a renewed look into the coming year, and the needs of the market.<\/p>\n\n\n\n

Amidst the challenges, the Bank for International Settlements has just published a new policy that will allow banks to hold 2% of their reserves in cryptocurrency. Moreover, the decision was highlighted in the Prudential Treatment of Cryptoasset exposure document that arrived this month.<\/p>\n\n\n\n

June\u2019s release of the BIS\u2019s second consultation on the prudential treatment of banks\u2019 exposure to crypto assets outlined similar facets of categorization. Conversely, that document implemented the policy to allow banks to keep 1% of reserves in cryptocurrency. Subsequently, that has been raised by a percentage point.<\/p>\n\n\n\n

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Source: Today\u2019s Crypto News<\/figcaption><\/figure>\n\n\n\n

The document outlines the two distinct groupings of crypto assets; Group 1 and Group 2. The first grouping is defined as both \u201ctokenized traditional assets,\u201d and digital assets \u201cwith effective stabilization mechanisms.\u201d Additionally, Group 2 is defined as digital assets that \u201cfail to meet an of the classification conditions.\u201d<\/p>\n\n\n\n

Additionally, the document notes that banks\u2019 exposures to group 2 crypto assets \u201cmust not exceed 2% of the bank\u2019s Tier 1 capital,\u201d within their reserves. The development paves the way for banks to grow their reserves in cryptocurrency. Specifically, within the specific thresholds laid out by the BIS.<\/p>\n\n\n\n

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NEWS BY – CETOEX NEWS <\/strong><\/p>\n\n\n\n

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Cetoex News – The Bank for International Settlements (BIS) has just released its\u00a0Prudential Treatment of Cryptoasset exposure\u00a0report for December 2022. In it, they have unveiled a new policy that allows… <\/p>\n","protected":false},"author":1,"featured_media":574,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[8,9,129],"tags":[41,44,106,212,28,26],"class_list":["post-573","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin","category-blockchain","category-cetoex-special","tag-cetoex","tag-cetoex-news","tag-crypto","tag-crypto-new-policy","tag-crypto-news","tag-cryptocurrency"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/news.cetoex.com\/wp-content\/uploads\/2022\/12\/bis.jpeg.webp","_links":{"self":[{"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/posts\/573"}],"collection":[{"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/comments?post=573"}],"version-history":[{"count":1,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/posts\/573\/revisions"}],"predecessor-version":[{"id":575,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/posts\/573\/revisions\/575"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/media\/574"}],"wp:attachment":[{"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/media?parent=573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/categories?post=573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.cetoex.com\/wp-json\/wp\/v2\/tags?post=573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}