Basel Committee's Approval of Disclosure Framework Signals Changes in Crypto Exposures

Wednesday, 3 July 2024, 16:19

The Basel Committee has given the green light to a new disclosure framework for cryptocurrency exposures, highlighting the need for increased transparency in the banking sector. Based on feedback from a December 2022 discussion paper, financial institutions will be required to implement these changes by 2026 to better manage and disclose their crypto holdings. This move aims to address the evolving nature of crypto assets and ensure banks are adequately prepared for the associated risks.
CoinDesk
Basel Committee's Approval of Disclosure Framework Signals Changes in Crypto Exposures

Basel Committee's Approval of Disclosure Framework

The Basel Committee has officially approved a new disclosure framework concerning cryptocurrency exposures. This signals a significant shift in how banks handle and report their crypto holdings.

Implementation Deadline

Financial institutions are mandated to implement the new framework by 2026, emphasizing the importance of timely compliance with the updated guidelines.

Enhanced Transparency and Risk Management

  • Transparency: The new framework aims to enhance transparency in reporting crypto exposures, enabling better risk assessment.
  • Risk Management: By enforcing disclosure requirements, banks can improve their risk management processes related to cryptocurrency holdings.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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