BANKS CRYPTO EXPOSURE MUST BE DISCLOSED — BIS BASEL COMMITTEE

Last updated: June 19, 2025, 23:28 | Written by: Gavin Wood

The world of cryptocurrency continues to evolve at a breakneck pace, and with its increasing integration into the traditional financial system, regulators are stepping up their efforts to ensure stability and transparency. The Basel Committee on Banking Supervision approved a disclosure framework for banks' exposure to crypto that must be implemented by the start of 2025 as the world's central banks look to supportA significant move in this direction comes from the Basel Committee on Banking Supervision (BIS), which has finalized a disclosure framework mandating banks to reveal their cryptoasset exposures. The Basel Committee on Banking Supervision has issued a public consultation on banks' disclosure of cryptoasset exposures. The consultation is based on the disclosure requirements contained in the final prudential standard on the treatment of bank's cryptoasset exposures published in December 2025.This decision, stemming from concerns over potential risks, aims to bolster market discipline and provide stakeholders with the necessary information to assess these risks effectively.The proposed regulations, currently under public consultation, are slated to take effect by January 1, 2025, marking a pivotal moment for the intersection of traditional finance and the digital asset landscape.This move isn't just about compliance; it's about fostering a more secure and transparent financial ecosystem where cryptoassets are increasingly playing a role.The framework not only ensures that banks are responsible in their dealings with crypto, but it also builds trust and confidence in a rapidly evolving market.

The Basel Committee's Mandate and Crypto Regulation

The Basel Committee on Banking Supervision, a key component of the Bank for International Settlements (BIS), plays a crucial role in setting global standards for bank regulation.Comprising central banks and financial authorities from 28 jurisdictions, the Committee serves as a forum for international cooperation on banking supervisory matters. Bitcoin vs. Marx: Two Competing Geopolitical Domino Theories Marxism and Bitcoin have one thing in common, the idea that a radical change in the structure of society will happen iIts primary goal is to strengthen the regulation, supervision, and practices of banks worldwide, thereby enhancing financial stability.The Committee's recent focus on cryptoassets is a direct response to the growing presence of these assets within the financial system and the potential risks they pose.

The proposed regulations emphasize transparency, requiring banks to disclose their crypto exposures in a standardized manner. Banks crypto exposure must be disclosed BIS Basel Committee The proposed regulations are currently open to the public for comments, and if approved, they will come into effect by Jan. 1This move is driven by the need to ensure that all stakeholders, including investors, depositors, and other financial institutions, have a clear understanding of the risks involved.By making cryptoasset exposures more visible, the Basel Committee aims to promote responsible innovation and prevent systemic risks from building up within the banking sector.

Key Objectives of the Disclosure Framework

Enhance Market Discipline: By requiring banks to disclose their cryptoasset exposures, the framework encourages market participants to assess and manage risks more effectively.
Provide Sufficient Information: The disclosure framework aims to provide stakeholders with the information they need to evaluate the risks associated with banks' involvement in the cryptoasset market.
Promote Financial Stability: By mitigating potential risks arising from cryptoasset exposures, the framework contributes to the overall stability of the financial system.

Disclosure Requirements: What Banks Need to Report

The new disclosure framework outlines specific requirements for banks to report their cryptoasset exposures.These requirements are designed to provide a comprehensive view of a bank's involvement in the crypto market and the associated risks. The Basel Committee on Banking Supervision last week approved a disclosure framework for banks exposure to crypto as the world s central banks look to support market discipline and ensure sufficient information is available to evaluate risks.The updated standards include a new definition of materiality for certain crypto-assets and set thresholds for when banks must disclose their exposures.

Banks are expected to report a range of information, including:

The type and amount of cryptoassets held.
The accounting classification of these assets.
The risk management practices in place to mitigate potential losses.
The impact of cryptoasset exposures on the bank's capital and liquidity positions.

Furthermore, banks must report average daily values for their crypto holdings to give a more accurate picture of their risk levels.This requirement addresses concerns that snapshots of cryptoasset exposures at a single point in time may not fully reflect the volatility and potential risks associated with these assets.

Practical Examples of Disclosure Requirements

Imagine a hypothetical bank, ""CryptoBank,"" that holds Bitcoin and Ethereum for trading purposes.Under the new disclosure framework, CryptoBank would be required to report the following:

The total amount of Bitcoin and Ethereum held, expressed in both units and USD equivalent.
The accounting classification of these assets (e.g., held-for-trading).
A description of the risk management practices in place, such as stop-loss orders and hedging strategies.
The impact of potential price declines in Bitcoin and Ethereum on CryptoBank's capital adequacy ratio.
The average daily trading volume of Bitcoin and Ethereum over the reporting period.

This level of detail would provide stakeholders with a clear understanding of CryptoBank's exposure to cryptoassets and the potential risks involved.

Implications for the Banking Industry

The Basel Committee's disclosure framework has significant implications for the banking industry. The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on Oct. 17, Sunday, Ap. All news;Banks will need to invest in systems and processes to track and report their cryptoasset exposures accurately and consistently. [ad_1]The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on Oct. 17, proposing to make it compulsory for banks to disclose their crypto exposure. The Basel Committee comprises cenThis may require significant investments in technology and personnel, particularly for smaller banks with limited resources.

Furthermore, the increased transparency required by the framework may impact banks' strategies regarding cryptoasset activities. The Basel Committee on Banking Supervision has finalised its disclosure framework for banks' cryptoasset exposures. The disclosure framework has been developed based on the disclosure requirements contained in the final prudential standard on banks' cryptoasset exposures published in December 2025.Banks may be more cautious in their approach to cryptoasset investments and may focus on lower-risk activities, such as providing custody services or facilitating cryptoasset transactions for clients.The prudential treatment of these assets will also need to be carefully considered.

Challenges and Opportunities

While the disclosure framework presents challenges for banks, it also creates opportunities. The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on Oct. 17, proposing to make it compulsory for banks to disclose their crypto exposure. The Basel Committee comprises central banks and financial authorities from 28 jurisdictions and is a forum for regulatory cooperation on banking supervisory matters. [ ]By embracing transparency and responsible risk management, banks can build trust with their stakeholders and position themselves as leaders in the evolving cryptoasset market.

Challenges:
- Implementing new reporting systems and processes.
- Ensuring data accuracy and consistency.
- Managing the reputational risks associated with cryptoasset exposures.
Opportunities:
- Building trust with stakeholders through transparency.
- Attracting clients who value responsible risk management.
- Developing innovative cryptoasset products and services.

The Definition of Materiality and Thresholds for Disclosure

A crucial aspect of the new standards is the definition of materiality for certain crypto-assets.This definition sets the bar for when banks are required to disclose their exposures. The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on Oct. 17, proposing to make Crypto news community Cryptocurrency issue news tradingThe Basel Committee recognizes that not all crypto-assets are created equal, and some may pose a greater risk to financial stability than others. The proposed regulations are currently open to the public for comments and if approved they will come into effect by Jan 1 2025 The Basel Committee on BankingThe threshold for disclosure will be based on a percentage of the bank's total assets or regulatory capital, ensuring that only significant exposures are subject to reporting requirements.

The specific thresholds are still subject to public comment and may be adjusted before the final regulations are implemented.However, the general principle is that banks with a small amount of cryptoasset exposure relative to their overall size will not be required to disclose it. Cointelegraph By Prashant Jha The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on Oct. 17, proposing to make it compulsory for banks to disclose their crypto exposure. The Basel Committee comprises central banks and financial authorities from 28 jurisdictions and is a forum for regulatory cooperation [ ]This approach aims to balance the need for transparency with the burden of compliance for smaller institutions.

Impact on Stablecoins and Tokenized Assets

The updated standards also include targeted amendments to the cryptoasset standard to tighten the criteria for certain stablecoins to receive preferential regulatory treatment.The Basel Committee is particularly concerned about stablecoins that lack robust backing or are not subject to adequate regulatory oversight.These stablecoins pose a greater risk to financial stability and require more stringent regulatory treatment.

The framework also addresses the treatment of tokenized traditional assets, which are digital representations of existing financial assets, such as stocks, bonds, or real estate.The Basel Committee recognizes the potential benefits of tokenization, but also acknowledges the risks associated with these assets, such as operational risk and legal uncertainty. The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on Oct. 17, proposing to make it compulsory for banks to disclose theirThe standards aim to ensure that tokenized assets are subject to appropriate regulatory oversight and that banks manage the risks associated with these assets effectively.

Public Consultation and Implementation Timeline

The proposed regulations are currently open to the public for comments, providing an opportunity for stakeholders to voice their concerns and suggestions.The Basel Committee encourages banks, industry associations, and other interested parties to submit their feedback on the proposed framework. The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on Oct. 17, proposing to make itThe consultation period is an important part of the regulatory process, ensuring that the final regulations are well-informed and reflect the diverse perspectives of the financial community.

If approved, the new disclosure framework will come into effect by January 1, 2025. The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on Oct. 17, proposing to make it compulsory for banks to dThis timeline gives banks sufficient time to prepare for the new reporting requirements and implement the necessary systems and processes.The Basel Committee will provide guidance and support to banks during the implementation phase to ensure a smooth transition.

How Banks Can Prepare

Here are some steps banks can take to prepare for the new disclosure framework:

Assess current cryptoasset exposures: Conduct a thorough review of all cryptoasset-related activities and exposures.
Develop a reporting plan: Create a plan for collecting, tracking, and reporting the required information.
Invest in technology: Implement systems and tools to automate the reporting process and ensure data accuracy.
Train staff: Provide training to employees on the new disclosure requirements and best practices for managing cryptoasset risks.
Engage with regulators: Participate in the public consultation process and seek clarification from regulators on any areas of uncertainty.

The Future of Crypto Regulation and Banking

The Basel Committee's disclosure framework is a significant step towards integrating cryptoassets into the mainstream financial system. [ Octo ] MicroStrategy s endgame is to be the leading Bitcoin bank: Michael Saylor Technology [ Octo ] BTC risks dropping below $60k as Bitcoin Dogs trades above $0.006 Market AnalysisAs cryptoassets continue to evolve and become more widely adopted, regulators will need to adapt their approaches to ensure that these assets are subject to appropriate oversight. The Basel Committee met on July 2-3 and made policy decisions on issues that included disclosure of banks crypto exposure. Its decisions are part of the Basel III reforms that were begun inThe focus will likely remain on promoting transparency, managing risks, and protecting consumers and investors.

The framework also signals a broader trend towards greater regulatory scrutiny of cryptoassets globally.Other jurisdictions are also developing their own regulations for cryptoassets, and international cooperation will be essential to ensure that these regulations are consistent and effective.

Key Takeaways and Actionable Advice

Transparency is key: Banks must embrace transparency in their cryptoasset activities to build trust with stakeholders.
Risk management is paramount: Banks must implement robust risk management practices to mitigate potential losses from cryptoasset exposures.
Compliance is essential: Banks must comply with all applicable regulations, including the Basel Committee's disclosure framework.
Stay informed: Banks must stay informed about the evolving regulatory landscape and adapt their strategies accordingly.
Engage with regulators: Banks should actively engage with regulators to shape the future of cryptoasset regulation.

Conclusion

The Basel Committee's decision to mandate the disclosure of banks crypto exposure marks a pivotal moment in the integration of digital assets into the traditional financial system. Basel Committee has published its final disclosure framework for banks' cryptoasset exposures. The Committee has also published targeted amendments to its cryptoasset standard to tighten the criteria for certain stablecoins to receive a preferential regulatory treatment. Both standards are to be implemented by .By requiring banks to be transparent about their crypto-related activities, the framework aims to enhance market discipline, provide sufficient information for risk assessment, and ultimately promote financial stability. Market Cap: $3,486,692,762,847.05 24h Vol: $157,577,032,850.93 BTC Dominance: 59.21% Home; Coins MarketCap; Crypto Exchanges; Crypto Calculator; Top Gainers and LoserWhile the implementation of these regulations presents challenges for the banking industry, it also offers opportunities for institutions to demonstrate responsible innovation and build trust with their stakeholders. This publication sets out the prudential treatment of banks' exposures to cryptoassets, including tokenised traditional assets, stablecoins and unbacked cryptoassets. The standard is in the form of a new chapter of the consolidated Basel Framework (SCO60: Cryptoasset exposures) that the Committee has agreed to implement by .As the world of cryptocurrency continues to evolve, it is essential that banks embrace transparency, prioritize risk management, and actively engage with regulators to navigate the evolving landscape. The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on October 17, proposing to make it mandatory for banks to disclose their exposure to cryptoassets. The Basel Committee is made up of central banks and financial authorities from 28 jurisdictions and is a forum for regulatory cooperation [ ]The January 1, 2025, deadline looms, and preparation is key to ensuring a smooth transition and a more secure financial future.The increased scrutiny and reporting requirements will help to mitigate risks and foster a more stable environment for the continued growth of the crypto market. The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) released a consultation paper on Oct. 17, proposing to make it compulsory for banks to disclose their crypto exposure. The Basel Committee comprises central banks and financial authorities from 28 jurisdictions and is a forum for regulatory cooperation onStay informed and prepared to adapt to these changes.