# Basel Committee, SCO60

> Basel Committee, SCO60 (Basel Committee on Banking Supervision): Bank capital · the sharpest traceability rule anywhere. Region: Global. Restricts anonymity: Anonymity-enhancing assets or unattributed transfers are barred outright, or barred for regulated firms.

Part of the Soda Labs Privacy Hub regulation map, which reads the instruments
themselves rather than summarising the summaries: https://www.sodalabs.xyz/privacy-hub/regulation

## Key facts

- Entry type: Regulator or standard-setter
- Region: Global
- Subject: Bank capital · the sharpest traceability rule anywhere
- Authority: Basel Committee on Banking Supervision
- Stance on on-chain confidentiality: Restricts anonymity. Anonymity-enhancing assets or unattributed transfers are barred outright, or barred for regulated firms.
- Tags: bank capital, SCO60, traceability, permissionless, under review
- Canonical page: https://www.sodalabs.xyz/privacy-hub/regulation/reg-basel-sco60

## What it actually says

The single most privacy-restrictive sentence in global financial regulation is probably here. To qualify for the favourable capital treatment, a network must be well-defined such that all transactions and participants are traceable. A chain that obscures the transaction graph cannot satisfy it. Worth being precise about what this does and does not mean: it binds banks, not protocols, and sets a capital cost rather than a legality question. But the effect is that permissionless-chain assets fall into Group 2, capped at 2% of Tier 1 capital, which is why bank balance sheets stay away. The standard itself concedes the Committee will keep reflecting on whether those risks can be mitigated enough for Group 1. A targeted review is under way; nobody has said whether it touches the traceability condition.

## The instruments that matter

- **SCO60.17(2), classification condition 3**: all key elements of the network must be well-defined such that all transactions and participants are traceable
- **Group 2 cap**: exposures capped at 2% of Tier 1 capital, which is where permissionless-chain assets land
- **Took effect 1 January 2026**: deferred once from 2025; the industry request for a further delay in August 2025 was not granted
- **Targeted review expedited November 2025**: endorsed by GHOS on 9 March 2026, with an update due before end-2026; its scope is not public

## Sources

- [Prudential treatment of cryptoasset exposures](https://www.bis.org/bcbs/publ/d545.pdf)
- [GHOS deferral announcement](https://www.bis.org/press/p240513a.htm)

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