Topic: Cryptocurrencies Pose Risks to Banks, Warns Basel Committee - page 4. (Read 629 times)

Useless committee is not recommended to anyone. Because they are all the big whales in crypto community so all the committees are not supporting to cryptocurrency. Banks are centralised and controlled by government person so they stole the money in all the way. But Bitcoin is a decentralised cryptocurrency so completely transparent to everyone. My request do not cheat with peoples  because many uneducated peoples are trust the government policies but they only cheating the peoples emotion.

Fiat cash is the primary tool used in money laundering and crime. Bitcoin is traceable, it's the last thing a criminal would want to use.

Well this has been discussed and just common sense will tell us that Banks clearly see crypto as their main threat that's why we have seen a lot of attacks from them specially in 2017 when Bitcoin and other crypto suddenly exploded and banks losing big profits from those who decided to switch their funds to crypto. So I'm not surprised by this the results of this so called committees. Obviously, crypto will have not a fair share of optimism coming from those banking elites so this news is not likely affect us.

The Basel Committee on Banking Supervision, a group of international banking authorities, has warned that the growth of cryptocurrencies poses a number of risks to banks and global financial stability.

The committee – part of the Bank for International Settlements (BIS), widely considered the central bank of central banks – published a statement on Wednesday, saying that potential risks for banks include liquidity, credit and market risks, operational risk (including fraud and cyber risks), money laundering and terrorist financing risk, and legal and reputational risks.

Although banks currently have “very limited” direct exposure to cryptocurrencies, institutions should still “at a minimum” carry out extensive due diligence and disclose any exposure to crypto assets to minimize the risks, the committee said.

Banks should further have a “clear and robust” risk management framework to deal with the “high degree” of risk posed by cryptocurrencies.

The risk management framework should be “fully integrated” into banks’ overall risks management processes, including those relating to anti-money laundering (AML), combating the financing of terrorism (CFT) and evasion of sanctions, the committee said.

A “comprehensive” assessment of the risks should be incorporated into their internal capital and liquidity adequacy assessment processes, it added.

Additionally, supervisory bodies should be informed of actual or planned cryptocurrency exposure, along with an assurance that the institution has fully assessed and mitigated the risks.

Finally, the committee said that it is working with other global standard-setting bodies and the Financial Stability Board (FSB) to arrive at guidance on “prudential treatment” of banks’ exposure to cryptocurrencies in order to “appropriately” reflect the risks.

Last June, BIS said in its Annual Economic Report that it’s hard to see if cryptocurrencies solve any specific economic problem yet. “Transactions are slow and costly, prone to congestion, and cannot scale with demand,” it said at the time.


Reference: https://www.coindesk.com/https-www-coindesk-com-cryptocurrencies-pose-risks-to-banks-and-financial-stability-warns-basel-committee