BIS approves proposed regulation on banks’ disclosure of cryptocurrency exposure

The Bank for International Settlements (BIS) has approved proposed regulations regarding banks disclosing their exposure to cryptocurrency risks. The Basel Committee on Banking Supervision, a subsidiary of the Bank for International Settlements, approved proposed regulations on disclosing cryptocurrency asset risk exposure and amending cryptocurrency asset prudential supervision at a meeting held on the 2nd and 3rd of this month. This will require banks to disclose information about their risk exposure to virtual assets, including trading activities and holdings.

The Basel Committee began developing proposed regulations in December 2022 with the aim of establishing standards for assessing the risks of virtual assets and providing adequate information. The Basel Committee will release more detailed information on the proposed rules later this month. The final rules will come into effect from 2026.