The Basel Committee on Banking Supervision has released a final disclosure framework for banks’ crypto exposures and made targeted amendments to its cryptoasset standards. These standards are set to come into effect on January 1, 2026. The Committee, which is part of the Bank for International Settlements (BIS), has been working on this framework for over a year. The updates, aimed at enhancing transparency and ensuring a consistent regulatory approach in the digital assets field, are crucial.
The new disclosure framework, known as DIS55, mandates banks to provide detailed information on their crypto activities through standardized tables and templates. Banks are required to furnish both qualitative descriptions of their crypto-related business and quantitative data on capital and liquidity requirements. By standardizing these disclosures, the Committee aims to enhance market discipline and decrease information gaps among market participants. This move is expected to contribute to greater market transparency and stability, ultimately supporting the broader financial system.
Under the framework, banks are obligated to share how they assess risks and classify these assets. They must also disclose data on their crypto exposures and related capital requirements, including information on the accounting classification and liquidity needs for these assets. The updated standards introduce a new definition of “materiality” for certain crypto-assets and establish thresholds for when banks need to disclose their exposures. Moreover, banks are required to report average daily values for their crypto holdings to provide a more accurate picture of their risk levels.
In addition to the disclosure framework, the Committee has revised its prudential standard for crypto-assets, focusing on tightening the criteria under which certain stablecoins can receive preferential “Group 1b” regulatory treatment. These changes are intended to clarify the regulatory framework and promote a consistent understanding of the standards across jurisdictions. The Basel Committee has also made technical amendments, including removing specific detailed requirements and clarifying the scope of disclosures. The Committee remains committed to monitoring developments in the cryptoasset markets and adjusting its regulatory framework as needed to address emerging risks.
The Basel Committee’s efforts to enhance regulatory standards for banks’ crypto exposures are commendable. The new disclosure framework and amendments to the cryptoasset standards mark significant progress in strengthening banks’ engagement with the cryptoasset market. These initiatives are crucial in ensuring transparency, stability, and market discipline in the evolving landscape of digital assets.
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