BIS to oblige banks to disclose crypto exposure starting 2025
In a consultative document, the Basel Committee said the measures would reduce information asymmetry among banks and market participants. Financial institutions might soon be required to disclose their exposure to crypto currencies. The Basel Committee on Banking Supervision, headquartered at the Bank for International Settlements (BIS), has published a draft guidance on how banks should work with crypto holdings. The international committee is a conglomerate of bank supervisors from 28 jurisdictions, including powerhouses like the U.S., U.K., and European Union. A consultative document published on Oct. 17 proposed requiring banks to disclose activities “related to crypto assets and the approach used in assessing the classification conditions.” Under the proposals, banks would also have to disclose information on how they account for classifying exposures to cryptocurrencies, liabilities, and liquidity. Should the Committee agree on the proposal by Jan. 31, 2024, th...