An important contribution from the ACI FMA Crypto Working Group.

On 10th September ACI Financial Markets Association (ACI FMA) has submitted a response to the public consultation of the Basel Committee on Banking Supervision, published on 10th June, regarding the prudential treatment of banks’ cryptoasset exposures.

Until we receive a confirmation to do so, the specific details of our contribution to this public consultation are not available for dissemination. However, we would like to share that we strongly believe that ACI FMA is well placed and prepared to offer advice on this particular topic, given that our Crypto Working Group has been in place for over three years, drawing in expertise from regulated Crypto Banks, Brokers to Investment Funds and the wholesale OTC banking industry in general.

ACI FMA and its Crypto Working Group believe that the existing banking industry has a wealth of risk management expertise and experience that would bring a lot of value to this new and emerging asset class. In addition, we consider that cryptoassets have a similar risk profile to many currently traded OTC Commodities and Emerging Market currencies including NDF’s (Non-Deliverable Forwards).

Therefore, in our view, the potential impact of the proposal will be to keep banks and their expertise out, thereby denying citizens the opportunity to experience this asset class with the guidance of banking professionals, and thus leaving them more exposed than they should be as this market continues to grow.

Whenever appropriate and subject to new information, ACI FMA will notify you of any update on this matter. In any event, all comments will be published on the website of the Bank for International Settlements (BIS) unless a respondent specifically requests confidential treatment.

For further details, please access the following links: