WASHINGTON, Tuesday, May 14, 2024 – The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, has announced a delay in the implementation of its prudential standard for banks’ crypto-asset exposures.
The original deadline of January 2025 has been pushed back to January 1, 2026, according to a Media Release published on May 13, 2024, by the Bank of International Settlements website. 1
This decision aims to provide member countries additional time to establish clear and consistent regulatory frameworks for crypto assets.
The Basel Committee endorsed the prudential standard in December 2022, seeking to mitigate the financial stability risks associated with crypto assets while encouraging responsible innovation within the banking sector.
This action aligns with the Basel Committee’s broader strategic plan for addressing emerging financial risks. The committee’s 2023-24 work program prioritizes digitalization, climate-related financial risks, and the ongoing implementation of the Basel III framework.
Through ongoing assessments and regulatory adjustments, the GHOS seeks to address potential vulnerabilities in the global banking system posed by digital assets and other novel risks.
The extended timeline aligns with international trends in crypto regulation. For instance, the Australian Tax Office recently implemented stricter rules on crypto exchanges to combat tax evasion, highlighting a global trend towards strengthening oversight of crypto activities.
Here is a summary of the GHOS Press Release dated May 13, 2024:
The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, has extended the deadline for implementing the prudential standard for banks’ crypto asset exposures to January 1, 2026.
This extension aims to ensure all members can fully and consistently apply the standard, which promotes financial stability while encouraging responsible innovation. Meeting on May 13, 2024, GHOS also reviewed the progress of Basel III reforms, reaffirming its commitment to full and consistent implementation as soon as possible.
Significant progress has been noted, with about two-thirds of member jurisdictions expected to complete implementation by this year and the remainder by next year. The GHOS emphasized the importance of having a prudent global regulatory framework, especially in light of recent financial market shocks.
The original Press Release can be read here.
- bis.org: https://www.bis.org/press/p240513a.htm[↩]
