Banks Would Have to Disclose Crypto Holdings Under New BIS Plan
Banks will have to disclose cryptocurrency holdings under new plans floated Thursday, as international regulators partly blamed banking collapses on the sudden popularity of crypto. The Basel Committee on Banking Supervision, which sets norms for lenders in traditional finance (TradFi), has already said banks should issue potentially prohibitive capital for their holdings of unbacked crypto such as bitcoin (BTC) or ether (ETH).
After a turbulent year that saw the collapse of crypto exchange FTX, as well as digitally focused lenders Signature and Silicon Valley Banks, the standard-setter now wants to see lenders reveal their exposure as it seeks to cut contagion. A consultation paper to be published soon will propose “a set of disclosure requirements related to banks’ crypto asset exposures,” complementing existing capital requirements for digital assets that were finalized in December, the Committee said in a statement. The Basel grouping, which includes bank supervisors from 28 global jurisdictions including the U.S., U.K. and European Union, had previously said it will monitor crypto norms and modify them if needed, but does not appear to have previously flagged the idea of separate disclosure rules.
