The Basel Committee on Banking Supervision warns about the risks posed by cryptocurrencies

bitcoin crypto coinsThe growth of cryptocurrencies bring numerous risks towards the banking system and the global financial stability, warns the Basel Committee on Banking Supervision, a group of international banking authorities.

They have published a statement warning about potential risks for the banking system. According to them, cryptocurrencies can pose a risk to: liquidity, credit and market risks, operational risk (including fraud and cyber risks), money laundering and terrorist financing risk, and legal and reputational risks.

They advise to proceed with due diligence: “Before acquiring exposures to crypto-assets or providing related services, a bank should conduct comprehensive analyses of the risks noted above. The bank should ensure that it has the relevant and requisite technical expertise to adequately assess the risks stemming from crypto-assets.”

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