BIS: Global banks have reduced their exposure to certain cryptocurrencies by 43.6% in the past year

02/28 19:18

Global banks have reduced their exposure to certain cryptocurrencies by 43.6% over the past year, the Bank for International Settlements (BIS) said on Tuesday. A report by the Basel Committee on Banking Supervision (BCBS) showed that total exposure to cryptocurrencies, including direct exposure to cryptocurrencies and exposure through derivatives, fell from 61.7 per cent in 2021 to 15.4 per cent in 2022. The report says that the change in banks' crypto exposure is mainly due to fewer banks responding to the BIS survey, but there are other factors such as market conditions and banks reducing their exposure possibly due to the BCBS global crypto banking rules. The sample of participating banks decreased from 182 to 126. BCBS approved rules in December last year which stipulate that banks should not have more than 2% exposure to certain cryptocurrencies. It also recommended that cryptocurrency holdings should be limited in June earlier that year. The deadline for implementing the BCBS's proposed crypto banking rules is 2025, but the data suggests that banks are already taking action. The report says that the share of crypto exposure in the Basel III Monitor is "reduced to 0.003% and 0.001% of total exposure, respectively".
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