The Basel Committee on Banking Supervision unveils a plan requiring banks to disclose their cryptocurrency holdings.
The plan comes in the wake of the collapse of several large crypto firms, and the demise of US cryptocurrency-focused banks Signature and Silicon Valley Bank this spring.
The committee, which is responsible for setting standards in traditional finance, previously acknowledged the need for banks to allocate significant capital to hedge their holdings of unsecured cryptocurrencies such as Bitcoin and Ethereum. The regulator is going a step further and insisting on full holdings disclosure.
System-Wide Banking Stress
In response to the banking turmoil in March that was «the most significant system-wide banking stress since the Great Financial Crisis» in terms of its scale and scope, the Committee published a report today that assesses the causes of the turmoil, the regulatory and supervisory responses, and the initial lessons learned.
In a forthcoming consultative paper, the Basel Committee plans to unveil comprehensive disclosure requirements for banks' exposure to cryptocurrencies. These requirements will complement existing capital requirements for digital assets and are seen as a proactive measure to prevent potential contagion within the financial system.
