Basel Committee consults on disclosure of banks‘ cryptoasset exposures

The BCBS has issued a public consultation on banks‘ Disclosure of cryptoasset exposures, with a proposed implementation date of 1 January 2025.
As a reminder, following a prior consultation, in December 2022 the BCBS published Prudential treatment of cryptoasset exposures, setting out the prudential treatment of banks‘ exposures to cryptoassets, including tokenised traditional assets, stablecoins and unbacked cryptoassets. As stated above, the present consultative document on Disclosure of cryptoasset exposures now proposes a standardized disclosure table and set of templates for banks‘ cryptoasset exposures with a proposed implementation date of 1 January 2025. Under the proposals, banks would be required to disclose qualitative information on their activities related to cryptoassets and quantitative information on exposures to cryptoassets and the related capital and liquidity requirements. Banks would also be required to provide details of the accounting classifications of their exposures to cryptoassets and cryptoliabilities.
The present consultative document proposes a standardized disclosure table and a set of templates for banks‘ cryptoasset exposures, which are set out in a new chapter of the Basel Framework: DIS55 Cryptoasset exposures.
The proposal for DIS55 is set out in Annex 1 to this publication and contains the following table and templates:
1. Table CAEA: Qualitative disclosure on a bank’s activities related to cryptoassets and the approach used in assessing the classification conditions.
2. Template CAE1: Cryptoasset exposures and capital requirements.
3. Template CAE2: Accounting classification of exposures to cryptoassets and cryptoliabilities.
4. Template CAE3: Liquidity requirements for exposures to cryptoassets and cryptoliabilities.
When finalized, DIS55 will replace paragraphs SCO60.128 to SCO60.130 of the Basel Framework. The proposal for DIS55 requires banks to disclose the sources of information that they have used to assess whether the cryptoassets to which they are exposed comply with the cryptoasset classification conditions set out in SCO60 and includes standardized disclosures relating to liquidity requirements. The Basel Committee expects that the use of common disclosure templates for banks‘ cryptoasset exposures will support the exercise of market discipline and contribute to reducing information asymmetry amongst banks and market participants.
The BCBS welcomes comments from the public and market participants, including Pillar 3 disclosure users and preparers, on all aspects of this consultative document. Comments must be submitted by 31 January 2024, using THIS link. Comments will be published on the BIS‘ website, unless the respondent specifically requests confidential treatment.