Benzinga - The Basel Committee on Banking Supervision has released draft guidelines stipulating that financial institutions should offer numerical and descriptive data concerning their cryptocurrency dealings.
This directive complements the substantial capital prerequisites the committee previously instituted, aiming to deter banks from maintaining unsupported digital currencies such as Bitcoin and Ether, Coindesk reported.
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These measures come in the wake of challenges encountered by crypto-affiliated banks like Signature Bank and Silicon Valley Bank.
Incorporating these guidelines by 2025, banks are expected to provide "qualitative information on their activities related to crypto assets and quantitative information on exposures to crypto assets and the related capital and liquidity requirements," as stated by the committee.
This group is associated with the Bank for International Settlements, a conglomerate of central banks headquartered in Basel, Switzerland.
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The committee further emphasized the importance of a standardized disclosure method, asserting, "A common format for disclosures will support the exercise of market discipline and help to reduce information asymmetry between banks and market participants."
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