Basel Committee Reconsiders Stringent Crypto Capital Requirements Amid Global Regulatory Divergence

The Basel Committee on Banking Supervision is revisiting its stringent cryptocurrency capital regulations as key global financial jurisdictions demonstrate divergent approaches. According to the committee’s chair in a Financial Times interview, the United States, United Kingdom, and European Union are developing distinct regulatory frameworks for digital assets. This regulatory fragmentation, coupled with accelerating stablecoin adoption across global markets, has prompted reconsideration of the proposed 1,250% risk weight capital charges for certain crypto exposures. The committee’s original framework, designed to address potential volatility in cryptocurrency markets, now faces recalibration as major economies implement tailored approaches to digital asset oversight. Market observers note that the evolving regulatory landscape reflects growing recognition of cryptocurrency’s expanding role in global finance while maintaining appropriate risk management protocols. The review process signals potential alignment between international standards and regional implementations, though specific timeline for revised proposals remains undetermined. Banking institutions worldwide continue monitoring these developments as they navigate increasing client demand for cryptocurrency services alongside regulatory compliance requirements.