Global Banking Regulator Endorses Framework for Revealing Banks’ Crypto Holdings

The Basel Committee has sanctioned a framework for the disclosure of banks’ crypto holdings. This framework is set to be unveiled later in the month and is expected to be in place by 2026. The Basel Committee on Banking Supervision, a key international banking regulatory authority, has endorsed a disclosure scheme aimed at banks’ crypto holdings, which is to be adopted by the beginning of 2026. This move is in response to the global central banks’ efforts to enhance market transparency and facilitate the assessment of associated risks.

As an integral part of the Bank for International Settlements, the committee announced in a recent press release that it would release the framework details soon. This body is recognized as the foremost global standard-setter for bank regulation.

After evaluating feedback from a consultation launched in December 2022, the committee has completed the framework. This includes a series of public tables and templates that detail banks’ exposure to crypto assets. The framework mandates banks to provide both qualitative and quantitative data regarding their involvement in crypto.

Moreover, the committee has green-lighted specific amendments to the prudential standard for crypto assets. These amendments are designed to enhance the uniform interpretation of the standard, especially concerning the criteria that allow stablecoins to benefit from a more favorable ‘Group 1b’ regulatory treatment. The revised standard, also scheduled for release later this month, is to be implemented by the onset of 2026.