The Basel Committee on Banking Supervision has approved a framework for banks to disclose their crypto asset holdings.
The Basel Committee on Banking Supervision (BCBS), responsible for setting global banking standards, comprises 45 member nations, including India.
The relationship between cryptocurrencies and centralized banking systems is currently in its early stages, marked by limited integration between their operations. To address this, the Basel Committee on Banking Supervision (BCBS), a global standard-setting body, has taken a significant step by approving a new ‘disclosure framework’. This framework outlines how banks should disclose their exposure to crypto assets, which are known for their volatility and financial risks. The association of crypto assets with traditional banking systems is under scrutiny worldwide. BCBS has established guidelines for banks to follow when dealing with crypto assets to ensure financial stability.
BCBS approves crypto asset disclosure framework
The BCBS-approved disclosure framework mandates banks to publicly document their involvement with crypto assets and their exposure to these volatile investments.
According to an official statement from BCBS, “These disclosures are designed to improve information transparency and bolster market oversight. The framework is scheduled for publication later this month, with implementation slated for 1 January 2026.”
The Basel Committee, consisting of 45 members such as India, Australia, China, the EU, Germany, Italy, and Japan, among others, will enforce the guidelines across banks in these regions.
For the past two years, the BCBS has been deliberating rules to regulate how banks interact with crypto assets.
In 2022, the committee initiated a public consultation on banks’ disclosure of crypto asset exposures. Recently, the BCBS has approved updated revisions focused on stablecoins for this document.
Stablecoins are crypto assets backed by traditional assets such as fiat currencies or gold, designed to be less susceptible to market volatility compared to other cryptocurrencies. BCBS members have deliberated on the implications of banks issuing stablecoins, acknowledging the inherent risks while expressing readiness to monitor developments in this domain.
BCBS’ future plans to regulate banks and crypto assets
The BCBS-approved disclosure framework mandates banks to publicly record their crypto activities and exposure to these high-risk assets.
“These disclosures are intended to improve information availability and bolster market discipline. The framework is set to be published later this month and will be implemented starting January 1, 2026,” stated the BCBS in an official announcement.
The Basel Committee, consisting of 45 members including India, Australia, China, the EU, Germany, Italy, and Japan, will see its guidelines implemented across banks in these regions.
The BCBS has been considering regulations for the relationship between banks and crypto assets for the past two years.
In 2022, the organization released a public consultation on the disclosure of banks’ crypto asset exposures. Recently, the BCBS approved several stablecoin-focused revisions to this document.
Stablecoins are crypto assets backed by traditional assets such as fiat currencies or gold, making them less susceptible to market volatility compared to other cryptocurrencies. BCBS members have debated the implications of banks issuing stablecoins, recognizing the inherent risks but expressing a willingness to monitor developments in this area.
BCBS’ future plans to regulate banks and crypto assets
In the near future, the committee plans to conduct consultations on managing risks posed by third-party companies that might become involved in the bank-crypto relationship.
Additionally, the organization aims to initiate discussions on climate-related financial risks. The BCBS stated that the outcomes of these consultations will be published later this month.
