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 <p class="is-style-lead">International regulators propose new transparency measures for banks’ crypto asset exposures, following a tumultuous year marked by banking disruptions linked to digital currencies.</p>
 <p>With the sudden growth and popularity of <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currencies like Bitcoin (BTC) and Ether (ETH), international regulators are now turning their attention towards the disclosure of these assets by banks, in a bid to maintain financial stability.</p>
 <p>The Basel Committee on Banking Supervision, an influential body that defines norms for traditional financial institutions, has already made its stance clear: banks should maintain potentially hefty capital against their holdings of cryptocurrencies that lack intrinsic backing.</p>
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    <p lang="en" dir="ltr">At its 4-5 October meeting, the #BaselCommittee agreed to consult on <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>asset and climate disclosures, approved the annual G-SIB assessment and published its report into the banking turmoil of early 2023 #BaselIII #FinancialRegulation https://t.co/iLVbtP2VzS pic.twitter.com/aSRw7YYHP7</p>— Bank for International Settlements (@BIS_org) October 5, 2023
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 <p>Their recommendations come in the wake of a tumultuous year for the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> industry, underscored by the downfall of <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> exchange FTX and digital-centric banks like Signature and Silicon Valley Banks. The committee’s concern stems from a desire to prevent widespread financial disturbances – or “contagion” – arising from sudden shocks in the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> sphere.</p>
 <p>In an upcoming consultation paper, the Basel Committee will further delve into this subject, suggesting specific “disclosure requirements related to banks’ <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> asset exposures.” This is in addition to the digital asset capital requirements they finalized in December.</p>
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 <p>It’s noteworthy that while the Basel Committee – a conglomerate of bank supervisors from 28 jurisdictions, including powerhouses like the U.S., U.K., and European Union – had always maintained its stance of monitoring and adjusting crypto norms as needed, this is its first overt indication towards separate disclosure norms.</p>
 <p>In a revelatory report released on Thursday, the committee didn’t mince words, equating the current challenges posed by cryptocurrencies to the “most significant system-wide banking stress” experienced since the 2008 financial meltdown. Interestingly, the sudden surge in crypto’s appeal was identified as a primary factor, amongst others, indirectly contributing to the upheavals in the traditional finance sector in March.</p>
 <p>For instance, the report indicated that New York-based Signature Bank, which closed its operations on March 12, gravely underestimated the risks accompanying its ties to <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> industry deposits. Its leadership seemingly failed to foresee how anxieties over <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> volatility could prompt even their traditional clients to pull out funds.</p>
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Banks and digital asset firms to coexist in third wave of crypto adoption
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/banks-to-disclose-cryptocurrency-holdings-amid-2023-bank-failures-tbt65277.html">https://thebittimes.com/banks-to-disclose-cryptocurrency-holdings-amid-2023-bank-failures-tbt65277.html</a></p>

Banks to disclose cryptocurrency holdings amid 2023 bank failures

TheBitTimes

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