Banks will soon need to disclose their exposure to crypto assets under new regulatory rules proposed by the Basel Committee on Banking Supervision.
The international regulatory body has suggested a standardized disclosure table along with templates for banks to report their cryptoasset exposures, with an intended implementation date of January 1, 2025.
According to the supervisory body, the proposals mandate that banks disclose qualitative information regarding their activities related to cryptoassets, as well as quantitative data on their exposures and the associated capital and liquidity requirements. Additionally, banks will be required to detail the accounting classifications of their cryptoasset exposures and cryptoliabilities. The Committee believes that a uniform disclosure format will promote market discipline and lessen information asymmetry between banks and market participants.
Stakeholders are invited to provide feedback on these proposals by January 31, 2024.