аÄÃÅÁùºÏ²Ê¹ÙÍø FMA would like to share the outcome of the Committee’s detailed work.
аÄÃÅÁùºÏ²Ê¹ÙÍø FMA Digital Assets Committee (DAC) has responded, on 29th September, to the 2nd BIS consultation on the prudential treatment of cryptoasset exposures.
We have decided to respond to the BIS consultation to ensure that, moving forward, our views and positions are considered on the prudential treatment of cryptoasset exposures, namely in the following topics:
· Remaining uncertainty around boundaries;
· Remaining challenges around application of Group 1 criteria and cliff effects;
· DLT add-on may undermine economic viability of a wide range of digitalisation projects;
· Group 2 exposure limit and conservative treatment will undermine banks’ ability to participate in crypto markets both direct and indirect (1250% is way too high) which is bad for Bank participation which in turn is bad for a broader functioning market in Crypto which is ultimately bad for consumers. The Digital Assets Committee believes that this Crypto market is here to stay, and as it continues to grow and develop, we should have a level playing field and allow banks in, rather than this curious grey zone of poorly and or unregulated activity that has grown too big and important in our customers' minds for us to ignore.
Please consult the attached documents to access the complete overview of the presented response and the Consultative Document from BIS.
- аÄÃÅÁùºÏ²Ê¹ÙÍø FMA Digital Assets Committee - BIS Consultation.29.Sep_.2022_0.pdf
- BIS Basel - Consultative Document June 2022._0.pdf
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