The Basel Committee on Banking Supervision has emphasized the need for standardized reporting and greater transparency in the crypto space. In a consultative document, the committee proposed mandatory reporting requirements for banks related to their crypto activities. The proposals cover both qualitative and quantitative aspects of crypto exposures.
Banks will need to disclose information about their crypto-related activities, exposures, liquidity requirements, and how they classify their crypto-related exposures and liabilities. The committee aims to implement these requirements by January 1, 2025, in order to promote market discipline and bridge the information gap between banks and market participants.
Comments on the proposals are invited from the public, market participants, disclosure users, and preparers until January 31, 2024. The Basel Committee, although its decisions don’t hold legal force, plays a crucial role in enhancing financial stability. It was established in 1974 and its secretariat is located at the Bank for International Settlements’ headquarters in Basel, Switzerland.