[Banks must disclose cryptocurrency holdings under new plan from the Bank for International Settlements]
International regulators on Thursday attributed bank failures in part to the rapid popularity of cryptocurrencies and now require banks to disclose their cryptocurrency holdings.
The Basel Committee on Banking Supervision, which sets regulations for traditional financial lenders, has said banks should set capital limits on their holdings of unbacked cryptocurrencies such as Bitcoin or Ethereum.
After a tumultuous year that included the collapse of digitally focused lenders such as FTX crypto exchange, Signature and Silicon Valley Bank, the standard setter wants to see these institutions disclose their risks.
The committee is about to propose a set of disclosure requirements related to banks’ crypto asset risks, which will supplement the digital asset capital requirements established in December.
The Basel Group, a group of banking regulators from 28 global regulatory regions including the United States, the United Kingdom and the European Union, appears to have made no mention of separate disclosure rules, although it has previously said it would monitor cryptocurrency regulations.
In its most recent report, the committee considered systemic banking stress since the 2008 financial crisis, with cryptocurrencies taking center stage. The report believes that the rapid popularity of cryptocurrencies, the increase in non-bank financial intermediaries and faster digital payment systems are the three major trends that caused traditional financial turmoil in March this year.
The report also stated that Signature Bank, which collapsed on March 12, did not realize the risk association with the crypto industry, and that senior officials ignored concerns about the instability of cryptocurrencies that could lead other customers to withdraw their funds.
#鴉快訊
International regulators on Thursday attributed bank failures in part to the rapid popularity of cryptocurrencies and now require banks to disclose their cryptocurrency holdings.
The Basel Committee on Banking Supervision, which sets regulations for traditional financial lenders, has said banks should set capital limits on their holdings of unbacked cryptocurrencies such as Bitcoin or Ethereum.
After a tumultuous year that included the collapse of digitally focused lenders such as FTX crypto exchange, Signature and Silicon Valley Bank, the standard setter wants to see these institutions disclose their risks.
The committee is about to propose a set of disclosure requirements related to banks’ crypto asset risks, which will supplement the digital asset capital requirements established in December.
The Basel Group, a group of banking regulators from 28 global regulatory regions including the United States, the United Kingdom and the European Union, appears to have made no mention of separate disclosure rules, although it has previously said it would monitor cryptocurrency regulations.
In its most recent report, the committee considered systemic banking stress since the 2008 financial crisis, with cryptocurrencies taking center stage. The report believes that the rapid popularity of cryptocurrencies, the increase in non-bank financial intermediaries and faster digital payment systems are the three major trends that caused traditional financial turmoil in March this year.
The report also stated that Signature Bank, which collapsed on March 12, did not realize the risk association with the crypto industry, and that senior officials ignored concerns about the instability of cryptocurrencies that could lead other customers to withdraw their funds.
#鴉快訊
