Global Regulators Set 2025 Deadline for Banks’ Crypto Asset Disclosure
A group of international banking regulators has proposed that major institutions must disclose their exposure to crypto assets by 2025.
The Basel Committee on Banking Supervision (BCBS) introduced draft guidelines, including standardized disclosure templates. The BCBS believes that these common templates for banks’ crypto asset activities will enhance market discipline and bridge the knowledge gap between banks and market participants. The proposal includes requirements for qualitative and quantitative information about crypto asset activities, along with related capital and liquidity requirements.
While these standards function as recommendations, member nations usually incorporate them into their regulatory systems to some extent. Comments on the proposal are welcome until January 31, 2024, with plans to enforce the rules from January 1, 2025. These developments follow Basel’s establishment of rules in December 2022 regarding capital reserves for various crypto assets, including limiting a bank’s dealings with specific crypto assets, such as stablecoins, tokenized traditional assets, and unbacked cryptocurrencies. The exposure should ideally remain below 1% or not exceed 2%.
Clever Robot News Desk 20th October 2023