PANews reported on March 29 that according to CoinDesk, Pablo Hernández de Cos, Chairman of the Basel Committee on Banking Supervision and Governor of the Bank of Spain, said at an event hosted by the Bank for International Settlements that new capital regulations requiring banks to treat unsecured crypto assets such as Bitcoin (BTC) as the highest-risk assets will take effect in January 2025, and if these rules eventually have a chain reaction on finance, they may be modified.

"Since we know that markets are constantly evolving, what we will do with the standard is to focus on certain elements that may be particularly susceptible to market changes," Hernández de Cos said. "We should be ready to modify the standard when needed to try to cover potential endogenous reactions of the market." Hernández de Cos also said: "The Commission will oversee the implementation of the rules. The major jurisdictions that are members of the Commission should put them in place in less than two years, and legislators in some places, such as the European Union, have already taken action to do so. These rules are intended to indirectly eliminate potential risks that crypto markets may pose to other markets, and cryptocurrencies may have potential spillover effects on the banking industry."

Earlier in December last year, the Basel Committee on Banking Supervision approved the crypto banking rules to be implemented on January 1, 2025. It is reported that the Basel Committee on Banking Supervision is the main standard setter for global banking compliance and is composed of 45 national central banks and regulators from 28 jurisdictions.

Related reading: Interpretation of the Basel Accord to include crypto assets in its regulation