Basel Committee introduces crypto asset-based regulations – Digital Transformation News

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According to an official release, Basel Committee, a banking supervisor, published a consultative document on October 17, 2023. This document is expected to follow on from its prudential standard on the treatment of crypto asset exposures, finalised in December 2022.

Disclosure of crypto asset exposures is expected to propose a standardised disclosure table and set of templates for banks’ crypto-asset exposures with a proposed implementation date of 1 January 2025. Under the proposals, banks would be required to disclose qualitative information on their activities related to crypto assets and quantitative information on exposures to crypto assets and the related capital and liquidity requirements. 

Sources revealed that the 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 a common format for disclosures will support the exercise of market discipline and help to reduce information asymmetry between banks and market participants.

The committee is also belived to take feedbacks from the public and market participants, including the users and preparers of disclosures, on all aspects of the consultative document, by January 31, 2024. All comments will be published on the Bank for International Settlements website unless a respondent specifically requests confidential treatment.

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