HKMA issued a statement announcing that it expects authorized institutions to take note of the BCBS statement on crypto-assets and its prudential expectations. Authorized institutions planning to engage in activities relating to crypto-assets should discuss with HKMA and demonstrate that they have put in place appropriate systems and controls to identify and manage any risks associated with such activities.
On March 13, 2019, BCBS had issued a statement sets out the prudential expectations of BCBS regarding banks’ exposures to crypto-assets and related services in jurisdictions where banks are involved in such business activities. As the BCBS explains, crypto-assets do not reliably provide the standard functions of money and are unsafe to rely on as a medium of exchange or store of value. Such assets are not regarded as legal tender and are not backed by any government or public authority. BCBS believes that the continued growth of crypto-asset trading platforms and new financial products related to crypto-assets has the potential to raise financial stability concerns and increase risks faced by banks.
Keywords: Asia Pacific, Hong Kong, Banking, Crypto-assets, Regtech, HKMA
Previous ArticleESMA Registers Beyond Ratings SAS as a Credit Rating Agency
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.
ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.
ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.
EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).
SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.
US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.
ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.
FINMA published guidance (06/2020) on extending or discontinuing various exemptions that were granted due to the COVID-19 crisis.
SRB launched a consultation on the minimum data needed for valuation of a bank in resolution.