Latest news with #BaselCommittee
Arabian Post
3 days ago
- Business
- Arabian Post
Hong Kong Unveils Bold 'LEAP' Blueprint for Crypto Leadership
Hong Kong's government on 26 June issued its Policy Statement 2.0 on the development of digital assets, signalling a decisive push to position the city at the forefront of the global crypto landscape. The statement introduces the comprehensive 'LEAP' framework—Legal, Expand, Advance, People—underlining a mission to develop a trusted, innovative, and deeply integrated ecosystem for digital assets. The regulatory reforms assign explicit oversight roles: the Securities and Futures Commission will licence digital asset exchanges, custodial and dealing services, while the Hong Kong Monetary Authority will govern bank-related activities in the sector. In addition, licensing regimes for stablecoin issuers and custodians are scheduled to commence on 1 August 2025, designed to strengthen anti‑money‑laundering safeguards, investor protection, and transparency in stablecoin issuance. Central to Policy 2.0 is a commitment to tokenisation of traditional financial instruments and real‑world assets. The government will regularise issuance of tokenised government bonds, streamline stamp‑duty treatment for tokenised ETFs, and legislate to support tokenisation of assets such as precious and non‑ferrous metals, and renewable energy products. These bids aim to boost liquidity and broaden market access, aligning with existing initiatives such as the HK$6.8 billion in green bond token issuances since 2022. ADVERTISEMENT Stablecoins also feature prominently, with proposals to pilot licensed stablecoins in public sector uses. Market consultation is seeking input on integrating these instruments into government operations and cross‑border payments, underpinned by stricter regulatory clarity. Tax incentives for private investment vehicles and family offices trading digital asset securities are expected in the 2025–26 fiscal year, aligning digital and traditional financial regimes. International alignment is embedded in the blueprint. Hong Kong's framework adheres to global standards—covering anti‑money‑laundering as per FATF, Basel Committee prudential supervision, IOSCO's policy recommendations, and OECD crypto‑asset tax transparency measures. Complementary pilot schemes include HKMA's 'Project Ensemble' wholesale central bank digital currency trials, LME‑backed tokenisation of metal assets in Hong Kong warehouses, and a Cyberport‑sponsored incubator scheme to finance blockchain startups. Since unveiling its original 2022 policy, the government has approved licences for over a dozen digital asset platforms, including nine trading licences and OTC frameworks, and supported tokenised bond issues by both government and corporate entities. Financial Secretary Paul Chan and SFC chief Julia Leung emphasise that this next phase marks a departure from pilot testing, transitioning toward institutionalisation and global competitiveness. Industry leaders responded positively. Legal and compliance expert Cora Ang described the framework as 'a strategic win' that aligns regulatory clarity with stablecoin and tokenisation growth. HashKey CEO Xiao Feng noted the city is entering a 'new stage of maturity', transitioning from sandbox environments to a substantive digital assets regime. Historical drivers such as the JPEX OTC fraud prompted regulators to enforce tighter custody and trading separation to protect investors. Notably, fintech legal advisers in Hong Kong report surging demand. Firms are actively supporting issuance of tokenised gold and digital bonds, as banks like Bank of Communications and Zhuhai Huafa Group deploy digital debt instruments via licensed platforms. Meanwhile, legal specialists continue to advocate for derivatives, margin‑lending, and institutional frameworks targeted at professional investors. Hong Kong's strategic deployment of Policy 2.0 underlines a competitive counterbalance to rival jurisdictions such as Singapore, Dubai, and the US, each advancing their own crypto regulatory frameworks. The city's alignment with global financial standards—alongside tailored incentives and public‑sector engagement—signals a comprehensive, forward‑leaning posture in digital asset finance.
Yahoo
20-06-2025
- Business
- Yahoo
UK to Propose Restrictions on How Banks Can Deal With Crypto Next Year
The Bank of England plans to introduce new proposals on banks' exposure to crypto by 2026 to protect financial stability, a key official said Wednesday. The U.K. is looking to formulate rules that are more on the restrictive side, said David Bailey, the executive director of prudential policy at the Bank of England, in a speech at Risk Live Europe in London. Bailey suggested the country is likely to encourage banks to have a low exposure to crypto. "There are also examples where it might be more appropriate to start more towards the restrictive end of the spectrum, while evidence is gathered to see if standards can be relaxed over time," Bailey said. "The prudential treatment of banks' exposures to cryptoassets, and specifically those with features associated with heightened price volatility and where investors could lose the entirety of their investment, is an example in this space." The nation is seeking to implement the Basel Committee on Banking Supervision's disclosure framework for banks' exposure to crypto. This framework must be put in place by the start of 2026 to help nations evaluate risks, the committee said. The Committee also proposed rules that banks should limit exposure to crypto like bitcoin to 1%. The U.K.'s plans will be "informed" by the standards developed by the Basel Committee, Bailey said. Nations have been looking to ensure they can maintain financial stability despite crypto volatility by monitoring how interlinked banks are to crypto, especially following the 2023 collapses of Silicon Valley Bank and Silvergate Bank which both had crypto clients. The U.K.'s prudential crypto rules will come at a time where the country's other financial regulator — the Financial Conduct Authority — is set to implement a new regime for in to access your portfolio
Reuters
13-06-2025
- Business
- Reuters
Basel Committee makes climate risk disclosure for bank regulators voluntary
LONDON, June 13 (Reuters) - The world's forum for banking regulators published a framework for disclosing climate-related risks on Friday, making the implementation voluntary, following pushback from the U.S. The Basel Committee on Banking Supervision, made up of banking regulators and central bankers from the G20 economies and other countries, said it would be up to national regulators to decide whether to require banks to disclose climate-related risks, a proposal that has been under discussion for years. In a statement, the committee said it acknowledged "that the accuracy, consistency and quality of climate-related data are evolving, and therefore it is necessary to incorporate a reasonable level of flexibility into the final framework." Policymakers and banking regulators around the world have been debating the extent to which climate change should be embedded into regulation and central bank policy, a tussle analysts say is likely to shape decision making. The framework asks banks to identify how climate risk could impact their financial returns and risk profile and map how they intend to respond to it. It asks them to consider both "physical risk" like flooding and heat stress and "transition risk", which includes changes to climate policy affecting agriculture. In Europe, authorities have been ramping up efforts to address climate-related risks, with the European Central Bank and others making management of climate risks a key priority. In the U.S., however, efforts have been scaled back or even shelved under the new administration of President Donald Trump. In January, the Federal Reserve withdrew from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), the main global body devoted to policing climate risk in the financial system, while a number of top U.S. commercial banks have dropped climate targets. The updated framework follows a lengthy consultation process which resulted in several changes to Basel's original proposal, first published in November 2023, the Basel Committee said. As well as stressing the voluntary nature of the proposal, the Basel Committee removed the requirement for banks to report on the carbon emissions associated with their capital markets activities and trading, known in the industry as "facilitated emissions." The committee said it would monitor relevant developments, including the implementation of other reporting frameworks and disclosure practices, and consider whether any revisions to the framework would be warranted in future.
Bloomberg
16-05-2025
- Business
- Bloomberg
Basel Committee Resists US Pressure to Downplay Climate Risk
US efforts to rein in the Basel Committee's focus on climate risks were met with a rare show of resistance this week, according to people familiar with the matter. At a closed-door meeting that took place on Monday, the heads of the central banks and regulators that make up the Basel Committee on Banking Supervision rejected a proposal to dissolve the taskforce overseeing climate work, said the people, who asked not to be identified disclosing confidential conversations.
Reuters
12-05-2025
- Business
- Reuters
Global banking regulators agree to prioritise climate risk work
LONDON, May 12 (Reuters) - Global banking regulators on Monday agreed to intensify efforts to better understand the financial risks posed by climate change amid pushback from the United States. The oversight body of the world's forum for banking regulators met on Monday to take stock of the committee's work on climate-related financial risks and agreed to prioritise efforts to understand financial risk implications of extreme weather events, the Bank for International Settlements said in a statement. The agreement comes as policy makers and banking regulators on both sides of the Atlantic are debating the extent to which climate change should be embedded into central bank policy, a tussle analysts say is likely to shape central bank decision making around the world. In Europe, rulemakers have doubled down on efforts to address climate-related risks, with the European Central Bank making management of climate risks a key priority; in the United States, efforts have been scaled back or shelved. The group of central bank governors and heads of supervision, which make up the oversight body of the Basel Committee on Banking Supervision, also said it will publish a voluntary disclosure framework on climate-related financial risks for jurisdictions to consider. While the Basel Committee has no international authority or enforcement powers, its work on climate sets international standards which have a strong influence on national rulemaking. Analysts say its thinking is more closely aligned to European and British regulators which are taking steps to integrate climate risks into supervisory expectations for banks than to those in the United States. In recent years, the U.S. Federal Reserve has taken some steps to integrate climate change into its work through preliminary analysis and reports, but Chair Jerome Powell has repeatedly insisted the Fed has a limited role to play. More recently, U.S. President Donald Trump and other climate-sceptic Republicans have led a backlash against policies linked to environmental, social and governance issues across government, from coal mining to electric vehicles and DEI. In January, the Fed withdrew from, opens new tab the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), a global body of central banks and regulators devoted to exploring ways to police climate risk in the financial system. The U.S. Treasury Department's Office of the Comptroller of the Currency in March withdrew from a jointly agreed set of climate principles for large U.S. banks, calling the framework "overly burdensome and duplicative". Law firm Mayer Brown said in April it expects the Federal Deposit Insurance Corporation ("FDIC") and Fed to withdraw from the joint climate principles in the near future.
