As a researcher with extensive experience in the financial sector and a particular focus on crypto assets, I am thrilled to see the Basel Committee on Banking Supervision taking decisive action to improve transparency and establish clear regulatory frameworks for banks’ crypto asset exposures. The approval of the final disclosure framework and the revisions to the crypto asset prudential standard are significant steps forward in addressing the unique risks associated with these assets.
As a crypto investor, I’m excited to hear that the Basel Committee on Banking Supervision has finalized a disclosure framework for banks’ crypto asset exposures, effective from January 1, 2026. This new framework will bring greater transparency and promote responsible practices within the banking sector through standard public tables and templates. The decision was made after considering feedback from the public during the consultation process, which started in May 2023 following the initial proposal in December 2022.
The Committee has concluded modifications to its crypto asset prudential rule, which now includes particular qualifications for stablecoins to merit “Group 1b” regulatory classification. This revised standard, similar to the disclosure framework, will be released this month for public viewing, and the effective date is slated for January 1, 2026.
In July, I observed that the Basel Committee made some approvals. Specifically, they endorsed a disclosure framework pertaining to banks’ cryptoasset holdings. Furthermore, they announced their intention to introduce targeted modifications to the existing cryptoasset standard, referred to as Basel III.
— Bank for International Settlements (@BIS_org) July 3, 2024
As an analyst, I would caution that banks’ exposure to tokenized deposits and stablecoins carries potential risks, which the Committee has identified. Although current market situations may seem contained, the Basel Framework acknowledges these concerns, and we will continue to closely monitor the situation.
In response to the continuous evolutions among external service suppliers, the Basel Committee opted to create a consultative paper detailing essential principles for effectively managing risks associated with such entities.
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2024-07-04 05:40