FIA has joined with several other trade associations in responding to the Basel Committee on Banking Supervision’s (BCBS) consultative document on amendments to its standard for bank exposures to cryptoassets. The other associations signing the response were the Global Financial Markets Association (GFMA), the Institute of International Finance (IIF), the International Swaps and Derivatives Association (ISDA), and the Financial Services Forum (FSF).
The consultation document seeks to provide a comprehensive approach to the prudential treatment of cryptoasset exposures, addressing in varying detail aspects ranging from the application of the banking/trading book boundary to cryptoassets, to the large exposure requirements.
Of interest to FIA members and the cleared derivatives industry, the joint trade response urges the BCBS to not penalise client clearing and undermine consensus reforms that would discourage banks from facilitating central clearing of cryptoasset-linked derivatives for clients.
The joint trade response notes that introducing punitive requirements on banks centrally clearing crypto derivatives for clients will continue to push activity to non-banks, which are already the most active providers in this asset class.
