Basel Committee Proposes Compulsory Reporting on Banks’ Crypto Activities

The details required in the disclosure encompass the nature of the bank’s interactions with cryptocurrencies, specifics of their crypto holdings, and related liquidity prerequisites.

Furthermore, banks are expected to elucidate the categorization process for their crypto-related assets and obligations.

The committee’s objective is to enforce these disclosure prerequisites by the start of 2025.

Through the normalization of reporting on crypto activities, the committee aspires to fortify market integrity and bridge the knowledge chasm existing between banking institutions and market stakeholders.

Feedback from the general public, participants in the market, and those involved in disclosure creation and use has been solicited by the committee regarding these suggestions.

The Bank for International Settlements (BIS) will publicly display all feedback received by the end of January 2024, except if the respondent has explicitly asked for confidentiality.

Although the Basel Committee’s resolutions aren’t legally binding, they hold significant sway over global banking guidelines and practices.

Founded in 1974 by central bank leaders from the then G10 nations, the Basel Committee holds significant weight in fortifying financial equilibrium.

The primary hub for the committee’s secretariat is situated in Basel, Switzerland, within the Bank for International Settlements’ main premises.