The Basel Committee on Banking Supervision has recently announced the release of its final disclosure framework for banks’ crypto exposures and has implemented targeted changes to its cryptoasset standards. These amendments aim to strengthen the criteria for stablecoins to receive a preferential regulatory treatment. Both sets of standards are scheduled to take effect on January 1, 2026, marking a significant milestone in the Committee’s efforts to regulate the digital asset landscape.
DIS55: New Disclosure Framework
The newly introduced disclosure framework, known as DIS55, requires banks to provide detailed information on their cryptocurrency activities using standardized tables and templates. This includes qualitative descriptions of their crypto-related business and quantitative data on capital and liquidity requirements. By standardizing these disclosures, the Committee aims to enhance market discipline, reduce information gaps, and increase transparency among market participants. The ultimate goal is to promote stability within the financial system.
Addressing Risks and Capital Requirements
Under the updated standards, banks are obligated to share how they evaluate risks associated with crypto-assets and how they classify these assets. Additionally, they must disclose their crypto exposures and related capital requirements, accounting classification, and liquidity needs for these assets. The amendments also introduce a new definition of “materiality” for certain crypto-assets and set disclosure thresholds for banks based on their exposures. Furthermore, banks are required to report average daily values of their crypto holdings to provide a more accurate assessment of their risk levels.
In addition to the disclosure framework, the Basel Committee has revised its prudential standard for crypto-assets. The focus of these changes is on tightening the criteria for stablecoins to receive preferential regulatory treatment. By clarifying the regulatory framework and promoting a consistent understanding of standards across jurisdictions, the Committee seeks to establish a more robust regulatory environment that can adapt to the evolving landscape of cryptoassets.
The Basel Committee on Banking Supervision has emphasized its commitment to monitoring developments in the cryptoasset markets and making necessary adjustments to its regulatory framework. By incorporating technical amendments, clarifying disclosure requirements, and addressing emerging risks, the Committee aims to stay ahead of the curve and ensure the stability and integrity of the financial system in the face of rapid technological advancements.
