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The Basel Committee, backed by the Bank for International Settlements (BIS), has approved an innovative framework for banks to disclose their cryptocurrency exposures, marking a turning point in regulating digital asset markets with the aim of improving transparency and risk management.
A Decisive Step Towards Transparency in the Banking Industry
The adoption of the new framework by the Basel Committee, the world's leading authority on banking regulation, underscores the growing importance of crypto assets in the financial system. Scheduled to be implemented in early 2026, the framework will require banks to disclose detailed information about their crypto-related activities.
The framework includes a set of publicly available tables and templates that provide a clear picture of banks' exposure to digital assets. The initiative is intended to strengthen market discipline, facilitate risk assessment and address regulators' concerns about the rise of the cryptocurrency sector.
Banks should provide both qualitative and quantitative information to provide a comprehensive understanding of their involvement in the cryptocurrency space.
Focused revision of cryptocurrency soundness standards
In addition to the disclosure framework, the Basel Committee also approved changes to the prudential standards for cryptocurrencies. These adjustments are intended to clarify the criteria under which stablecoins can receive preferential regulatory treatment under the “Group 1b” category.
The amendments underscore the regulator's intention to adapt its regulatory framework to the rapid evolution of the cryptocurrency market, while maintaining strict prudential requirements and recognizing their potential role in the financial system and providing more flexibility for stablecoins.
In summary, an updated version of the standard, expected by the end of this month, will specify these changes and their impact on the regulatory treatment of different types of digital assets.
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Passionate about Bitcoin, I love exploring the world of blockchain and cryptocurrencies and sharing what I discover with the community. My dream is to live in a world where private life and financial freedom are guaranteed for everyone, and I believe Bitcoin is the tool that will make this possible.
Disclaimer
The views, thoughts and opinions expressed in this article are those of the author and should not be taken as investment advice. Please conduct your own research before making any investment decisions.
