The Basel Committee’s New Disclosure Framework for Banks’ Crypto Exposures

The Basel Committee on Banking Supervision has recently introduced a final disclosure framework for banks’ crypto exposures. This framework, known as DIS55, aims to enhance transparency and promote a consistent regulatory approach in the digital asset space. The Committee has been working on this framework for over a year, with the standards set to come into effect on Jan. 1, 2026.

Under the new disclosure framework, banks are required to provide detailed information on their crypto activities through standardized tables and templates. This includes qualitative descriptions of their crypto-related business as well as quantitative data on capital and liquidity requirements. By standardizing these disclosures, the Basel Committee hopes to improve market discipline and reduce information gaps among market participants, ultimately contributing to greater market transparency and stability.

In addition to disclosing their crypto exposures, banks are expected to share how they assess risks and classify these assets. They must also provide data on their related capital requirements, accounting classification, and liquidity needs for these assets. The updated standards include a new definition of “materiality” for certain crypto-assets and establish thresholds for when banks must disclose their exposures. Banks are also required to report average daily values for their crypto holdings to provide a more accurate depiction of their risk levels.

Apart from the disclosure framework, the Basel Committee has made amendments to its prudential standard for crypto-assets. These changes focus on tightening the criteria for certain stablecoins to receive preferential regulatory treatment. The goal is to clarify the regulatory framework and promote a consistent understanding of the standards across jurisdictions. The Committee has also incorporated technical amendments, such as removing detailed requirements and clarifying the scope of disclosures.

The Basel Committee reiterated its commitment to monitoring developments in the cryptoasset markets and adjusting its regulatory framework as necessary to address emerging risks. By staying vigilant and responsive to changes in the industry, the Committee aims to protect the stability of the financial system and ensure banks’ engagement with the cryptoasset market remains robust.