Global Banking Regulators Approve Framework for Banks to Disclose Crypto Exposure
The Basel Committee on Banking Supervision, a consortium of international banking regulators, has given the green light to frameworks enabling banks to divulge their crypto exposure, starting from January 2026.
As per an official statement, the finalized disclosure framework includes standardized public tables and templates encompassing banks’ crypto exposures. The committee emphasized that such disclosures will bolster information accessibility and fortify market discipline.
“The framework is set to be released later this month, with an effective date of 1 January 2026,” stated the committee.
Initially targeting January 2025 for crypto disclosures, the Basel Committee extended the deadline by a year. Additionally, the committee deliberated on the prudential implications of tokenized deposits and stablecoins on capital, noting that these risks are broadly covered within the Basel Framework amid current market dynamics.
Disclosure of Crypto Exposures
Back in January, the Independent Community Bankers of America (ICBA) highlighted a rising trend where cryptocurrency exposures are managed by exchanges, either through liquidity provision or vested interests in specific crypto assets.
The ICBA voiced support for the Basel Committee’s initiative in framing crypto asset disclosures, citing that the framework comprehensively addresses essential elements necessary for full exposure disclosure and clarifies its impact on the organization’s financial statements.
This move by global banking regulators comes at a juncture when crypto exposures have yet to permeate extensively into the banking sector. Last October, the Basel Committee underscored the need for banks to disclose quantitative information on crypto exposures and liquidity requirements. This entails revealing business activities encompassing direct asset ownership, customer account trading, equity investments in exchanges, and any crypto contracts issued by the bank.
