The Basel Committee on Banking Supervision is calling for requirements for traditional financial institutions to be supplemented by adding mandatory disclosure of any information related to digital assets.
Members of the Basel Committee on Banking Supervision, operating under the Bank for International Settlements (BIS), have published a consultative paper calling for a standardized set of requirements for banking institutions dealing with digital assets.
The regulator has developed a set of specialized templates that include a number of additional requirements for disclosure of:
- all transactions that involve digital assets;
- potential crypto risks;
- asset liquidity.
The consultative document thus expands on the Committee’s initial requirements, which only called for disclosure of cryptocurrency assets in the accounts of financial institutions.
According to BIS analysts, the standardization of requirements will allow not only to maintain market discipline but also minimize the risk of information asymmetry between banks and market participants.
The Committee put forward its initiative after studying the reasons for the collapses of crypto-friendly Signature Bank and Silicon Valley Bank.
