Basel Committee Consults on Disclosure of Banking Institutions’ Crypto-Asset Exposures

The Basel Committee on Banking Supervision published a consultative document to follow on from its prudential standard on the treatment of crypto-asset exposures, finalized in December 2022.

Disclosure of crypto-asset exposures “proposes a standardized 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 cryptoassets and the related capital and liquidity requirements.”

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 welcomes comments “from the public and market participants, including the users and preparers of disclosures, on all aspects of the consultative document, by 31 January 2024.”

All comments will be published “on the Bank for International Settlements website unless a respondent specifically requests confidential treatment.”

The Basel Committee is “the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability.”

The Committee reports “to the Group of Central Bank Governors and Heads of Supervision and seeks its endorsement for major decisions.”

The Committee reportedly has “no formal supranational authority, and its decisions have no legal force. Rather, the Committee relies on its members’ commitments to achieve its mandate. The Group of Central Bank Governors and Heads of Supervision is chaired by Tiff Macklem, Governor of the Bank of Canada.”

The Basel Committee is chaired by Pablo Hernández de Cos, Governor of the Bank of Spain.

Additional details regarding the Basel Committee are accessible here.

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