Global Regulator Urges Banks to Disclose Crypto Exposures
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Oct. 18, 2023

The Basel Committee on Banking Supervision released on Tuesday a draft guidance, opened for public consultation until 31 January, 2024, that will require, once it enters into force in 2025 if eventually approved, banks "to disclose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."

According to the document, "the use of common disclosure templates for banks’ crypto asset exposures will support the exercise of market discipline and contribute to reducing information asymmetry amongst banks and market participants."

The initiative follows the previous introduction of strong capital requirements by the committee after the Signature Bank and Silicon Valley Bank bankruptcies in order to discourage banks from holding unbacked crypto, including Bitcoin.

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