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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- May 14, 2024 05:34 UTC
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Why Did Global Central Banks Extend Crypto Rules Deadline? Here’s the Truth
The deadline for banks to follow a new rule on holding crypto-assets is pushed back from January 2025 to 2026.
This delay allows more time for all countries to implement the rules together, creating a fairer and more stable global market.
This decision reflects the need for clear and unified regulations for crypto-assets in the banking system.
In a notable development in global finance, the Group of Central Bank Governors and Heads of Supervision (GHOS) has decided to extend the deadline for implementing prudential standards concerning banks’ exposure to crypto-assets. Originally planned for enforcement by January 2025, the deadline has now been moved to January 1, 2026.
This shows us, once again, the urgent need for a unified global regulatory framework and enhanced stability in crypto.
Reviewing Progress
The decision to extend the deadline reflects the GHOS’s careful assessment of how member jurisdictions are progressing in adopting the new standards. Recognizing the different speeds at which countries are adapting their regulations, the extended timeline aims to promote fair competition and ensure greater stability in global markets.
It also highlights the importance of giving enough time for developing clear and consistent regulatory frameworks for dealing with crypto assets.
The Challenges Have Not Ended Yet
Tiff Macklem, Chair of the GHPS and Governor of the Bank of Canada, emphasized the importance of the extended implementation period.
“The extension will be of great help, in order to make sure that the implementation of the cryptoasset standard is both complete and uniform in all the member jurisdictions”
Macklem
Understanding the strategy
Extending the deadline for crypto regulation is part of the Basel Committee’s broader strategic effort to address emerging financial risks. With a focus on digitalization, climate-centric financial risks, and ongoing Basel III framework implementation from 2023 to 2024, the committee is actively working to stay ahead of evolving challenges – come what may!
The GHOS currently aims to mitigate potential vulnerabilities in the global banking system by evaluating the space and adapting regulatory measures. These measures are also meant to address risks arising from digital assets and other emerging factors.
Is a global approach to crypto regulation even possible? Tell us what you think.
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