The Basel Committee on Banking Supervision has approved a new disclosure framework for bank exposure tocryptocurrencies.This framework aims to enhance market discipline and ensure adequate riskassessment.
Points
- BISapprovesanewdisclosureframeworkforcryptocurrencyexposure.
- Theframeworkwillbeimplementedinearly2026.
- Itincludesqualitativeandquantitativedisclosuresaboutcryptoactivities.
- Therevisionspromoteconsistentunderstandingofthecrypto-assetprudentialstandard.
- Thenewstandardsaimtostrengthenmarketdisciplineandriskassessment.
The Basel Committee on BankingSupervision,a keystandard-setterfor bank riskassessment,has approved a new disclosure framework for bank exposure tocryptocurrencies.Thisframework,set to be implemented in early2026,aims to strengthen market discipline and ensure sufficient information is available for effective riskassessment.
BIS announcesnewframework.Source:CoinTurk
The new framework includes a comprehensive set of publicly available tables and templates detailingbanks’exposure tocryptocurrencies.Banks will be required to disclose both qualitative information about their crypto activities and quantitative data on their exposure to theseassets.These disclosures are designed to provide a clearer picture of the risks associated with cryptocurrency exposure and enhance transparency in the bankingsector.
In addition to the disclosureframework,the Basel Committee has approved several targeted revisions to thecrypto-
- assetprudentialstandard.These revisions aim to further promote a consistent understanding of thestandard,particularly regarding the criteria for stablecoins to receive preferential‘Group1b’regulatorytreatment.The revised version of the prudential standard will also be published at the end of this month and is expected to be implemented alongside the new disclosure framework in early2026.
Explanation
- TheBaselCommitteeonBankingSupervision’snewdisclosureframeworkrepresentsasignificantsteptowardsenhancingtransparencyandmarketdisciplineinthebankingsector’shandlingofcryptocurrencies.
- Byrequiringbankstoprovidebothqualitativeandquantitativedisclosuresabouttheircryptoactivities,theframeworkaimstoensureacomprehensiveunderstandingoftherisksassociatedwithcryptocurrencyexposure.
- Thetargetedrevisionstothecrypto-assetprudentialstandard,particularlyconcerningstablecoins,aimtocreateamoreconsistentregulatoryenvironment,whichcanhelpinmaintainingfinancialstabilityandfosteringtrustinthecryptomarket.
- Theimplementationtimeline,setforearly2026,providesbankswithampletimetoadapttothesenewrequirementsandintegratethemintotheirriskmanagementpractices.
- Overall,thesedevelopmentsreflecttheincreasingrecognitionofcryptocurrencieswithinthetraditionalfinancialsystemandtheneedforrobustregulatoryframeworkstomanageassociatedriskseffectively.