Regulation
Global Central Banks Extend Crypto Regulation Deadline: The Real Reason for the Delay
The Group of Central Bank Governors and Supervisors (GHOS) has decided to extend the deadline for implementing its prudential standard regarding banks’ exposure to crypto-assets. Previously, it was expected to come into force by January 2025. However, the new deadline is January 1, 2026. This adjustment results from the need for a coherent global regulatory framework and better financial stability .
Rationale behind the extension
The decision to extend the deadline reflects GHOS’s assessment of progress and the willingness of member jurisdictions to adopt the new standards. Given the varying pace of regulatory adaptation between countries, the extended deadline aims to promote fair competition and guarantee greater stability in global markets. Additionally, this step highlights the importance of allowing sufficient time to develop clear and unified regulatory frameworks for crypto asset exposure.
Implications and importance of the extended deadline
Tiff Macklem, Chair of the GHPS and Governor of the Bank of Canada, provided insight into the importance of the extended implementation period. This ensures full and uniform adoption of the Cryptoassets Standard across all member jurisdictions. This cautious approach parallels the broader strategy of caution amid rapidly evolving technology and changing market conditions.
Central Bank Group Regulatory Efforts
The crypto regulation deadline extension is part of the Basel Committee’s broader strategic initiative to address emerging financial risks. The committee’s work program for 2023-2024 focuses on digitalization, climate-related financial risks and the continued implementation of the Basel III framework.
The GHOS currently aims to mitigate potential vulnerabilities in the global banking system by assessing the space and adapting regulatory measures. These measures also aim to address risks arising from digital assets and other emerging factors.