Basel Committee on Banking Supervision approved a final disclosure framework for banks’ cryptocurrency asset exposures. This framework is set to be implemented by January 1, 2026. It includes standard public tables and templates to improve transparency and support responsible practices in the banking sector. The decision came after reviewing feedback from a consultation that began in May 2023, following the initial proposal in December 2022.
The Committee also finalized revisions to its cryptocurrency asset prudential standard. These revisions include specific criteria for stablecoins to receive a “Group 1b” regulatory treatment. The updated standard, along with the disclosure framework, will be published later this month. Both will be implemented by January 1, 2026.
The Committee highlighted the risks associated with tokenized deposits and stablecoins. They warned about potential threats to the public from banks’ exposures to these assets. While current market conditions may present manageable risks, the Basel Framework addresses these issues and will include ongoing monitoring.
Due to the constant changes in third-party service providers, the Basel Committee decided to develop a consultative document. This document will outline fundamental guidelines for the sound management of third-party risk. This step aims to ensure that banks maintain proper oversight and management of risks associated with third-party services.
The new disclosure framework and revised prudential standards mark significant steps towards enhancing the regulation of cryptocurrency assets in the banking sector. By setting clear guidelines and promoting transparency, the Basel Committee aims to support responsible practices and mitigate risks. The January 1, 2026 implementation deadline gives banks time to prepare and comply with these new requirements.
Also read: SEC Finalizing Approval for Spot Ether ETFs, Potential July 4 Release