The Basel Committee on Banking Supervision has emphasized the significance of banks being transparent about their involvement with cryptoassets. They advocate for a uniform approach to reporting to ensure clarity in the cryptocurrency sector.
In a recent advisory document, the committee recommended that banks be compelled to report their activities in the crypto domain.
These guidelines encompass both the tangible and intangible facets of crypto engagements, according to the committee.
Banks are expected to disclose specifics about their operations in the crypto sphere, their commitments to crypto, and any related liquidity stipulations. Additionally, banks should detail how they categorize their obligations and assets tied to cryptocurrency.
The Basel Committee has set a target date of January 1, 2025, for the introduction of these disclosure mandates.
Through the standardization of reporting on crypto engagement, the committee aims to foster market integrity and narrow the knowledge divide separating banks from other market entities.
Feedback on these proposed measures is being solicited from the general public, industry stakeholders, and those involved in both preparing and utilizing disclosures.
All input gathered by January 31, 2024, will be publicly displayed on the Bank for International Settlements (BIS) website, except in cases where the contributor expressly seeks to maintain confidentiality.
The Basel Committee holds a pivotal position as the main international body setting standards for the prudential regulation of banks, significantly contributing to global financial stability.
Though its determinations aren’t legally binding, they carry substantial influence over global banking protocols and regulatory frameworks.
Founded in 1974 by central bank leaders from the group then recognized as the G10 countries, the Basel Committee on Banking Supervision has been instrumental in shaping banking norms.
Its administrative center resides at the headquarters of the Bank for International Settlements in Basel, Switzerland.