Global banking regulators to move ahead with crypto, climate rules

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Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken

LONDON – The Basel Committee of banking regulators said on Tuesday it will address climate-related risks and how banks should set aside capital to cover potential losses from cryptoassets.

The Swiss-based committee of banking regulators from the world’s main financial centres said it will launch a public consultation later this month on a set of principles for the “effective management and supervision of climate-related financial risks at internationally active banks”.

The committee said its members also agreed on the need for “conservative” risk-based set of minimum capital requirements standards for cryptoassets.

“Accordingly, the committee will further specify a proposed prudential treatment, with a view to issuing a further consultative document by mid-2022,” the committee said in a statement.

(Reporting by Huw Jones, Editing by Louise Heavens)