Cryptoasset standard amendments

The Basel Committee on Banking Supervision has issued a public consultation on proposed amendments to its standard on banks' exposures to cryptoassets. The proposed changes flesh out the criteria on the composition of the reserve assets that back stablecoins and puts in place a due diligence requirement to ensure that banks have an adequate understanding of their stabilisation mechanisms. The consultative document also includes various proposed technical amendments and a set of answers to frequently asked questions to help promote a consistent understanding of the cryptoasset standard.