Crypto asset regulations could be developed with the help of a new survey of stakeholders by the Basel Committee on Bank Supervision, which sets standards for bank regulators around the world.
A potential outcome of the survey is the establishment of minimum crypto asset standards internationally.
The Committee said the size of the crypto asset market is meaningful despite it’s a small part of the global financial system. Crypto is estimated to have reached a market cap of $800 billion in January 2018.
The global advisory center is urging banks to apply a conservative regulatory treatment to crypto assets, particularly for high-risk varieties.
The report said the most volatile crypto assets pose fraud and cyber risks for banks along with liquidity, credit and market concerns money and terrorist financing dangers.
Banks also are said to face liquidity, credit and market risks with highly unstable crypto assets.
The global standards center said banks that do business in crypto assets should at least conduct due diligence and make sure they have the technical expertise necessary to handle the risks.
The study added the anonymity and limited regulatory oversight of many crypto-assets…
