According to the Basel Committee on Banking Supervision, financial institutions should be particularly careful with risky cyber currencies.

When depositing equity as security for possible losses from such cryptocurrencies, you should proceed conservatively, the committee demanded in Basel on Thursday.

Such particularly risky cyber currencies are classified by the regulators in their own group of cryptocurrencies.

The so-called group two includes cyber currencies such as Bitcoin, which are not linked to other values, as well as stablecoins with stabilization mechanisms.

Most recently, cryptocurrencies on the stock exchange have been subject to major upheavals.

Stablecoins also came under massive pressure, although price capers should actually be ruled out with these, since they are linked to other values ​​such as the dollar.

In the case of cyber currencies such as Bitcoin, where this is not the case, large price jumps are the order of the day.

Nevertheless, the stablecoin TerraUSD, for example, recently experienced a real price drop.

Among other things, the Basel Committee proposed a limit on banks’ exposure to such risky Group Two cryptocurrencies.

According to this, banks' exposure to such stocks should not exceed one percent of core capital (Tier 1).

As early as June 2021, the committee on cyber currencies issued a comprehensive paper and divided them into two risk classes.

The Committee retained this basic classification.

The new rules should be finalized by the end of the year.

The Basel Committee for Banking Supervision, founded in 1974, is based at the Bank for International Settlements (BIS) in Basel.

It sets the global standards for banking supervision.