The global banking regulators have taken a
significant step towards increasing transparency in the financial sector. The
Basel Committee, comprising banking regulators from major global financial
hubs, has introduced a proposal to enforce standardized disclosure of crypto
assets by major banks starting in January 2025.
This move aims to bolster “market
discipline” by offering investors a comprehensive view of banks’ crypto
holdings and activities. The Basel Committee, one of the Bank for International
Settlements (BIS) committees, took this step after establishing new rules in
December last year that dictate the amount of capital banks must maintain to
cover various categories of crypto assets.
According to a statement on BIS‘ website, the Basel
Committee released a new framework for public consultation, outlining how banks
should report their crypto asset holdings to the public.
According to the proposal, banks must provide
qualitative and quantitative information regarding their dealings with crypto
assets. This information will encompass details on their exposure to crypto
assets, the corresponding capital and liquidity requirements, and their
activities related to these digital assets.
The Basel Committee stated: “Banks would also
be required to provide details of the accounting classifications of their
exposures to crypto assets and crypto liabilities. The Committee expects that…
