DJ Basler Committee consults on crypto assets at banks

By Hans Bentzien

FRANKFURT (Dow Jones) – The Basel Committee on Banking Supervision plans to capture banks‘ exposure to crypto assets from 2025 onwards. This is to be done through tables and templates, as the committee announced at the start of a consultation. The proposals suggest that banks must disclose qualitative information about their activities related to crypto assets, as well as quantitative information about their involvement in crypto assets and the associated capital and liquidity requirements.

In addition, as of 2025, banks will be required to provide details on the accounting classification of their exposures to crypto assets and crypto liabilities. The Committee believes that a common format for market discipline disclosure would help reduce information asymmetry between banks and market participants.

The consultation will run until January 31, 2024. Comments will be published on the website of the Bank for International Settlements, unless a respondent explicitly requests confidential treatment.

Contact the author: hans.bentzien@dowjones.com

DJG/hab/uxd

(END) Dow Jones Newswires

October 17, 2023 08:09 ET (12:09 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.