- The Basel Committee on Banking Supervision (BCBS) has made a significant announcement impacting the crypto sector.
- New frameworks have been approved to regulate banks’ exposure to cryptocurrencies.
- Aiming for enhanced market discipline and risk assessment, these frameworks will be implemented starting from early 2026.
Discover the new Basel Committee frameworks regulating banks’ cryptocurrency exposure, set to enhance market discipline and risk assessments by 2026.
Basel Committee Introduces New Crypto Exposure Frameworks
The Basel Committee on Banking Supervision (BCBS), recognized as the leading global standard-setter for risk and market discipline among banks, has approved a comprehensive framework to oversee banks’ exposure to cryptocurrencies. This pivotal decision was communicated in a recent press release by the International Settlements Bank (BIS).
Implementation Timeline and Objectives
The newly introduced frameworks are slated for implementation at the commencement of 2026. The objective behind this rigorous regulatory measure is to fortify market discipline and guarantee the availability of sufficient information for risk assessment. Central banks across the globe aim to leverage this framework to enhance their oversight capabilities.
Details of the Framework
The BCBS will publish additional details later this month, elucidating the framework’s intricacies. Initially proposed in December 2022 as part of a broader consultation exercise, the framework mandates that banks must disclose both qualitative and quantitative data regarding their crypto activities and exposures. This includes public tables and templates detailing crypto-related risks.
Revisions in Prudential Standards for Crypto Assets
Alongside the framework, the Basel Committee has endorsed targeted revisions to the prudential standards for crypto assets. One of the notable revisions pertains to the criteria for stablecoins to receive preferential ‘Group 1b’ regulatory treatment. These revisions aim to promote a uniform understanding and implementation of the standards and are expected to be published by the end of this month, with enforcement also beginning in early 2026.
Conclusion
The Basel Committee’s new frameworks and revisions signify a substantial shift towards stringent regulation of cryptocurrencies within the banking sector. By 2026, banks will be required to adhere to enhanced disclosure standards, thereby promoting greater transparency and enabling more robust risk management practices.
