BASEL COMMITTEE CHAIR CALLS FOR CROSS-BORDER REGULATION OF CRYPTOCURRENCY; DEFI
In a speech to the International Swaps and Derivatives Association, the Chair of the Basel Committee on Banking talked about the Committee’s work on cryptoassets. He said the jury is still out when it comes to ascertaining how best to harness the oft-cited promises and benefits of cryptoassets and DeFi, while mitigating their risks and safeguarding financial stability. The Basel Committee is of the view that a cryptoasset that provides equivalent economic functions and poses the same risks as a "traditional asset" should be subject to the same capital, liquidity and other requirements as the traditional asset. As well, the Committee believes the fast-paced developments in DeFi and cryptoassets necessitate a proactive and forward-looking regulatory and supervisory approach and collaboration among global authorities. Click here to read the speech.