Norms governing banks' exposure to crypto assets will be completed this year, the Basel Committee on Banking Supervision said, taking notice of recent market struggles as a reason to push ahead with the controversial plans.

The global banking standard-setter last year proposed rules requiring lenders to hold $1 in capital for each $1 of crypto held. That faced significant opposition from the likes of JPMorgan Chase (JPM) and Deutsche Bank (DB), two banks that viewed that as an overly arduous standard.

"Recent developments have further highlighted the importance of having a global minimum prudential framework to mitigate risks from crypto assets," the committee said in a statement, likely referring to the recent collapse of Terra's USD stablecoin.

"The committee plans to publish another consultation paper over the coming month, with a view to finalizing the prudential treatment around the end of this year," it said. Since 2008, the Basel, Switzerland-based organization has steadily toughened banks' capital requirements to avoid a repeat of the financial crisis.

Source: Coindesk