Banks Can Now Hold 2% of Reserves in Cryptocurrency: BIS New Policy Explained
The Bank for International Settlements (BIS) has just released its Prudential Treatment of Cryptoasset exposure report for December 2025, unveiling a groundbreaking new policy for the financial sector. This policy, effective January 1, 2025, allows banks to hold 2% of their reserves in cryptocurrency, marking a significant step in the integration of digital assets into traditional finance.
BIS Prudential Treatment of Crypto Asset Exposure Report
Last Friday, the Bank for International Settlements (BIS) published its final global prudential standards for banks’ exposures to crypto-assets. The standards include a new 2% limit for cryptocurrency holdings. This new policy, which allows banks to store 2% of their reserves in cryptocurrency, was created after a second consultation on the prudential supervision of cryptoassets. A global standard for banks’ exposure to crypto assets has been endorsed by the Group of Central Bank Governors and Heads of Supervision (GHOS) of the Bank for International Settlements.
Understanding the 2% Limit
The BIS report outlines various facets of how a strong incentive to not significantly exceed the 1% threshold, but a new 2% limit will be introduced which, if breached, will result in the whole of Group 2 exposures being subject to the Group 2b designation. This encourages cautious and controlled adoption of cryptocurrencies within banking reserves.
Key Takeaways of the BIS Crypto Policy:
- Effective Date: January 1, 2025.
- Maximum Cryptocurrency Holdings: Banks can hold up to 2% of their reserves in cryptocurrency.
- Prudential Supervision: The policy is a result of extensive consultation and aims to ensure responsible cryptoasset management.
- Group 2 Exposures: Exceeding the 2% limit results in stricter regulatory classifications.
Stay informed about the evolving landscape of cryptocurrency regulation and its impact on the financial industry.