The international banking standards organization, the Basel Committee on Banking Supervision, has released a preliminary document stating that banks are required to reveal both specific numbers and descriptions of their involvement in cryptocurrencies.
This directive complements the existing strict capital regulations already put in place by the committee. These rules aim to deter banks from holding cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) that are not sufficiently backed, which comes after incidents of disruption involving banks with ties to the cryptocurrency market, such as Signature Bank and Silicon Valley Bank.
According to the proposals, scheduled for implementation in 2025, “banks would be required to disclose qualitative information on their activities related to crypto assets and quantitative information on exposures to crypto assets and the related capital and liquidity requirements,” said the committee linked to the Bank for International Settlements.
Two weeks ago, a committee responsible for establishing rules for traditional financial institutions presented a set of plans. They are now available for public input and discussion until January 2024.