The Basel Committee on Banking Supervision has confirmed its approval of the final disclosure framework, which includes a standardized set of tables and templates for banks to report their exposure to crypto assets, the organization announced yesterday (Wednesday).
Adopting an appropriate disclosure framework for banks’ exposure to assets after the organization’s meeting in July. The decision was finalized after the organization’s meeting on July 2 and 3, which discusses various policies and media projects. The framework will be published later this month and will take effect from January 1, 2026.
Disclosure Framework and Amendments to Strengthen Standards for Stable coin Holdings: The Disclosure Framework was proposed in December 2022 and opened for comments in May 2023. The framework includes a set of targeted amendments to the original proposal, as well as a review of the prudential standard for stable coin holdings.
These revisions are intended to promote a consistent understanding of the standard, particularly with regard to the standards that allow stable coins to receive preferential regulatory treatment within the “Group 1B” category. The updated standard is expected to be published later this month, with an implementation date set for January 1, 2026.
Disclosure Framework and Strengthening Standards for Stable coin Holdings: Amendments and Revisions the Disclosure Framework was proposed in December 2022 and opened for comments in May 2023. The framework includes a set of targeted amendments to the original proposal, as well as a review of the prudential standard for stable coin holdings. These revisions are intended to promote a consistent understanding of the standard, particularly with regard to the standards that allow stable coins to receive preferential regulatory treatment within the “Group 1B” category. The updated standard is expected to be published later this month, with an implementation date set for January 1, 2026.
Assessment of risks on banks and stable coins
Members of the organization discussed the prudential implications for banks as potential issuers of token deposits and stable coins. The size and stability of these products depends in part on their specific structure and jurisdictional laws and regulations. The statement added: “Based on current market developments, these risks are broadly included in the Basel Framework. The Committee will continue to monitor this area and other developments in crypto asset markets.”
The European Union recently imposed the Markets for Crypto assets (MiCA) regulation on stable coin issuers. Stable coin issuers will have to follow the MiCA regulation along with the Basel Committee when it becomes effective. The new disclosure framework that has been adopted will have a significant impact on banking practices related to crypto assets. Banks will now have to uniformly and transparently report their exposure to crypto assets, using a set of standardized tables and templates in accordance with the new framework.
It will require banks to provide specific and comprehensive information about their crypto assets, including the time scale of holding, market value and risks associated with these assets. This new framework will help enhance the transparency of the crypto-asset sector and provide more accurate and reliable information in banking decisions. Thanks to this new framework, supervisors and investors will be able to get a clearer picture of banks’ exposure to crypto-assets and extent to which this affects their risks and financial strength.
This information may enhance the confidence of concerned parties and contribute to achieving greater stability and transparency in crypto-assets market. With an effective date of January 1, 2026, banks will have sufficient time to adapt to the new framework and ensure compliance with specific disclosure requirements. This framework is expected to contribute to improving banking practices related to crypto-assets and enhancing transparency and credibility in this growing sector.
Will banks’ current banking requirements change due to this new framework?
Yes, banks’ current banking requirements are expected to change due to this new disclosure framework. New requirements will be added regarding the disclosure and details of banks’ exposure to crypto assets, and these requirements will be binding on all banks operating in the financial sector. New requirements that will change due to the new framework include: Preparation of standardized tables and templates: Banks will be required to prepare standardized tables and templates to disclose their exposure to crypto assets. These tables and templates will outline the specific information that must be provided,
Providing specific information: The new requirements will require banks to provide specific information about their crypto assets, including time details of holding, market value and associated risks.
Effective date: The new framework will set an effective date for these new requirements, which is expected to be January 1, 2026. Banks will need to comply with the required disclosure by this date.
Be aware of the new requirements and develop and implement policies, procedures and systems to ensure compliance with this new framework. Banks may need to improve infrastructure and make changes in their systems to meet new disclosure requirements and ensure that the required information is provided accurately and in a timely manner. Overall, the new framework aims to enhance the transparency and credibility of banks regarding their crypto assets and provide more accurate.
How will banks’ compliance costs be affected by these new requirements? Will it reflect on customers?
It expects new requirements to disclose banks’ exposure to crypto assets to impact banks’ compliance costs. Banks may need to invest additional resources to develop and implement new policies, procedures and systems to meet these new requirements. This may include training employees, improving existing infrastructure, and implementing changes in financial disclosure and reporting systems.
