Banks will face mandatory disclosure of their crypto asset exposure as per new regulatory guidelines introduced by the Basel Committee on Banking Supervision.

The global regulatory organization has put forth a standardized disclosure framework, alongside a set of templates, concerning banks' crypto asset holdings. This framework is slated for implementation starting from January 1, 2025.

"According to the outlined suggestions, financial institutions will be obligated to furnish qualitative information about their involvement with crypto assets, coupled with quantitative data detailing their crypto asset exposure and the corresponding capital and liquidity requisites," explains the overseeing body. "Furthermore, banks will need to furnish information about the accounting categorizations for their crypto asset exposures and crypto-related liabilities. The Committee anticipates that the introduction of a uniform disclosure format will facilitate market discipline and alleviate information imbalances between banks and market participants."

The Committee has extended an invitation to stakeholders to offer their feedback on these proposals by January 31, 2024.