In a move towards greater transparency and market accountability, the Swiss Committee on Banking Supervision has published draft guidance requiring banks to disclose both quantitative and qualitative details of their cryptocurrency activities.
Swiss Banking Committee Advocates Comprehensive Disclosure of Banks' Crypto Participation
These new guidelines are an additional measure taken by the committee to increase existing capital requirements.
The aim is to deter banks from holding cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) without adequate backing, especially in light of recent challenges faced by crypto-related lenders such as Signature Bank and Silicon Valley Bank. The proposed regulations, scheduled to go into effect in 2025, were approved by the committee. As stated, it requires “banks to disclose qualitative information about their cryptoassets-related activities and quantitative information about their exposure to cryptoassets and related capital and liquidity requirements.”
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This organization is closely linked to the Bank for International Settlements, a consortium of central banks headquartered in Basel, Switzerland.
The committee also agreed that "a common framework for explanations
"The format will support the implementation of market discipline and help reduce information asymmetry between banks and market participants," he said.
This move is set to bring a more balanced and well-informed landscape in the field of cryptocurrency activities in the banking sector.
