The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on 17 October, proposing to make it compulsory for banks to disclose their crypto exposure, reports Cointelegraph.
The Basel Committee comprises central banks and financial authorities from 28 jurisdictions and is a forum for regulatory cooperation on banking supervisory matters. The latest consultation paper is based on the disclosure guidelines in the final prudential standard on how banks should handle their exposure to crypto assets released in December 2022.
The consultation paper aims to set a standardised “disclosure table and set of templates for banks’ crypto-asset exposures,” with a proposed implementation date of 1 January 2025. The Basel Committee has opened the proposal for public comment until 31 January, 2024, after which the results will be published on its website.
Under the new proposed regulations, banks would be required to provide quantitative data on exposures to crypto assets and the corresponding capital and liquidity requirements. Banks would also be required to offer qualitative data on their activities linked to cryptocurrencies.