A new move regarding cryptocurrencies has come from the Bank for International Settlements (BIS), which is skeptical of Bitcoin (BTC) and cryptocurrencies.
The Bank for International Settlements’ Basel Committee on Banking Supervision (BCBS) said it plans to review its 2022 guidelines for cryptocurrency holdings by banks, Bloomberg reported.
Accordingly, Bloomberg reported that BCBS plans to change bank cryptocurrency exposure rules that come into effect in 2022.
It was stated that the background to BCBS’s review of crypto rules is the rapid growth of the stablecoin market and recent changes in US legislation.
According to the current regulations of the BCBS, stablecoins are currently classified as high-risk assets like Bitcoin (BTC) and Ethreum (ETH), but this classification is expected to be eased with the new regulations.
At this point, the 2022 cryptocurrency guidance will be updated to be more positive next year, as most banks interpreted the previous guidelines published in 2022 as a signal to stay away from cryptocurrencies entirely.
Banks may soon take a softer stance on cryptocurrencies, with the BCBS preparing to revise its cryptocurrency guidance.
*This is not investment advice.