The proposed disclosure rules are subject to public comment and are scheduled to take effect on January 1, 2025. According to the proposals, commercial banks will be required to disclose qualitative and quantitative information about activities related to crypto assets. Including information on meeting capital and liquidity requirements for financial investments in digital assets.
“Banks will be required to provide shareholders and supervisors with comprehensive information on the accounting classification of their risks for crypto assets and crypto liabilities,” the supervisor believes.
The Supervisory Committee expects that disclosure of information will facilitate compliance with market discipline and help reduce information asymmetries between banks and market participants. Interested parties have until January 31, 2024 to participate in discussions on the BIS proposal.
In December 2022, the Basel Committee presented a final proposal to limit the amount of Tier 1 capital that commercial banks can hold in digital assets.
Source: Bits
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