The Basel Committee of the Bank for International Settlements has finalized crypto exposure rules for banks worldwide, which might have a direct impact on crypto regulation.
The Basel Committee in the Bank for International Settlements (BIS) is an international body comprising members from several countries. These members from central banks, which are BIS members, formulate policies and rules for banks worldwide. Recently, the committee finalized certain crypto exposure rules for banks. These rules would mandate banks to declare their crypto assets, which have been detailed in a press release.
Back in 2022, the Basel Committee had also released a report on how banks’ crypto holdings do not contribute to any risks. Almost two years later, it has created a disclosure framework for banks. On the other hand, the BIS will publish the framework in July 2024, and it will come into effect on January 1, 2026.
Further, the committee members reportedly discussed the impact of banks issuing tokenized deposits. Meanwhile, the press release mentioned how it would continue to monitor this subject in the future.
Besides, the press release officially stated the committee “approved a finalized disclosure framework, which includes a standardized set of public tables and templates covering banks’ crypto asset exposures. These disclosures aim to enhance information availability and support market discipline.”
The BIS provides a neutral forum for central banks and financial authorities to discuss critical issues, share information, and develop common policies. This collaborative approach helps address global financial challenges and prevent crises. In the past, the BIS has been an active collaborator on projects and policies covering crypto regulation.
Moreover, global crypto regulation is also an evolving space, with various viewpoints from different countries. Clear and transparent regulations can boost investor confidence in the crypto industry. This can attract new investors, leading to increased market liquidity, stability, and innovation.
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