The Basel Committee on Banking Supervision has announced the approval of a final disclosure framework aimed at standardizing how banks report their exposure to crypto assets. The decision, reached during a virtual meeting on July 2 and 3, marks the culmination of discussions on policy and supervisory measures.
Initially proposed in December 2022 and open for public comment since May 2023, the disclosure framework includes a standardized set of tables and templates. These are designed to enhance transparency and will be officially published later this month, becoming effective from January 1, 2026.
Key revisions to the framework address criteria for stablecoins to receive preferential regulatory treatment under the ‘Group 1b’ designation. Stablecoins with ineffective stabilisation mechanisms will be categorized differently, reflecting efforts to ensure consistency in regulatory standards.
Since 2019, the committee has been evaluating banks’ exposure to cryptocurrencies, with a significant development in 2021 proposing high-risk categorization for crypto assets under Group 2. This entails a risk weight of 1,250%, necessitating banks to allocate capital proportionate to their crypto exposure, limited to less than 1% of their Group 1 holdings.
Discussion within the committee also addressed the prudential implications of banks issuing tokenised deposits and stablecoins. These discussions underscored the need for robust regulatory frameworks that account for market dynamics and legal structures.
“The Basel Framework broadly encompasses risks posed by current market developments,” noted the committee, emphasizing ongoing monitoring of crypto asset markets.
In parallel, the European Union’s recent adoption of the Markets in Crypto-Assets Regulation (MiCA) imposes additional requirements on stablecoin issuers. This regulatory landscape underscores the evolving global approach towards managing risks associated with crypto assets.
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