The rise in the acquisition of crypto-asset has prompted the Bank of International Settlements, an international body with 60 worldwide central banksto issue a paper to discuss the treatment of crypto asset. The purpose of this is to welcome opinions from banks, scholars, crypto merchants, and ministries by March 13, 2020.
The announcement was made when the bank’s Committee on Banking Supervision observed the growth of crypto-assets and the critical risk it poses on financial stability and physical banks. The banks have identified credit, fraud, money laundering, adoption by banks, and reputation risks as some of the risks associated with crypto assets.
The committee has therefore raised two key issues for discussion. The first is the risks characteristics and features of crypto assets that will provide a basis for the formulation of policy. The second is concerned with the general principles and requirements for exposure to “high-risk crypto assets.”
