Basel Committee opens consultation  on banks’ requirement to disclose exposure to crypto-assets 

The Basel Committee on Banking Supervision on Tuesday issued a public consultation on the proposal for a standardized disclosure format for banks’ crypto-asset exposures. 

The public consultation following the proposal is based on the disclosure requirements in the ‘final prudential standard’ published in December 2022 detailing guidelines for banks’ crypto-asset exposures.

Further, the consultative document said banks will follow a standard disclosure format. The committee in the document proposed that the implementation date would be 1st January 2025. This however would help give investors a wholesome detail on crypto assets, encouraging market discipline. 

“The use of the common disclosure table and templates will support the exercise of market discipline and help to reduce information asymmetry amongst banks and market participants,” the committee said.

In the Basel Committee statement, the bank will have to provide information on their interaction with crypto-assets. “Under the proposals, banks would be required 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,” the committee said in a statement. Additionally, banks will provide all accounting classification of exposure to crypto-assets and liabilities.

Public comments from market participants and users on the proposed disclosure requirements are allowed and should be submitted by 31 January 2024. All submissions will be made public unless a respondent requests confidential treatment, the Committee said.

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