Banks must disclose quantitative and qualitative information on their crypto activities, according to draft guidance published by international standard-setter the Basel Committee on Banking Supervision on Tuesday.
Under the proposals, which would take effect in 2025, “banks would be required to disclose qualitative information on their activities related to cryptoassets and quantitative information on exposures to cryptoassets and the related capital and liquidity requirements,” said the committee, which is linked to the Bank for International Settlements, a network of central banks based in Basel, Switzerland.
“A common format for disclosures will support the exercise of market discipline and help to reduce information asymmetry between banks and market participants,” it added.
The plans were trailed two weeks ago by the committee, which sets norms for traditional-finance lenders designed to avoid a repeat of the 2008 financial crisis, and are open for consultation until January 2024.
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