Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

TOP SEARCHES

Stocks popular

Crypto

Currencies

CFD

Support

BIS Basel Committee on Banking Supervision Approves Framework for Banks’ Crypto Exposures

image
icon 04/07/24
icon 159

BIS Basel Committee on Banking Supervision Approves Framework for Banks’ Crypto Exposures

On July 3, the Bank for International Settlements published a press release regarding Basel Committee on Banking Supervision’s approval of the disclosure framework for banks’ cryptocurrency asset exposures and an agreement to make targeted amendments to its cryptocurrency asset standard.

This comes after it reviewed comments received in its consultations related to a disclosure framework for banks’ cryptocurrency asset exposure and some amendments to its cryptocurrency asset standard published two years ago.

A public consultation on banks’ disclosure of cryptocurrency asset exposures considered the disclosure requirements found within the final prudential standard on the treatment of banks’ cryptocurrency asset exposures.

Likewise, the public consultation on proposed amendments to its standard on banks’ exposures to cryptocurrency assets considered the criteria on the composition of the reserve assets that back stablecoins and a due diligence requirement towards ensuring that banks fully understand their stabilisation mechanisms.

Hence, the press release noted the approval of a finalised disclosure framework, including a standardised set of public tables and templates which cover banks’ cryptocurrency asset exposures. According to the Basel Committee, the focus on these disclosures is on enhancing information availability and supporting market discipline. The framework is expected to be implemented on January 1, 2026.

Furthermore, they mentioned the approval of revisions to the cryptocurrency asset prudential standard, to further promote a consistent understanding of the standard, especially regarding the criteria for stablecoins. The updated standard is expected to be implemented on January 1, 2026.

The committee members talked about the prudential implications of banks being issuers of tokenised deposits and stablecoins, noting that “the scale and magnitude of financial stability risks from such products depend in part on their specific structures and jurisdictional laws and regulations.”

Recomended for you

image

Crude Prices Drop After IEA Monthly Report

On Wednesday, crude prices dropped and gave back earlier gains after the IEA reduced its forecast for this year’s demand...

May 15, 2024
icon 271
May 15, 2024
icon 271
prev next
This site is registered on wpml.org as a development site.