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Basel Committee approves cryptocurrency disclosure and bank capital regime
The group also approved revisions to its prudential standard for banks’ exposure to cryptocurrencies, which aims to “promote a consistent understanding of the standard,” particularly its approach to the capital treatment of stablecoins.
The revised disclosure framework and standard will be published by the end of the month and will enter into force on 1 January 2026.
Additionally, regulators have discussed the potential implications of tokenized deposits and stablecoins on banks’ capital positions and the possible risks to financial stability that these innovations could create.
Ultimately, they concluded that the risks are “largely captured” by the current capital adequacy regime, but added that they will continue to monitor the ongoing evolution of the cryptocurrency sector.
Separately, regulators said they had reviewed feedback on proposed changes to the banking book interest rate risk standard, designed to better capture interest rate shocks and account for interest rate changes that occur when rates are close to zero.
The updated rule in this area will be published by the end of the month and the changes will take effect on January 1, 2026.
Finally, the Basel Committee agreed to launch a consultation on the principles for third-party risk management, which will also be published later this month and will replace the current guidance on outsourcing in the financial sector.
“The updated principles reflect the evolution of a broader and more diverse environment of third-party service providers and would help provide a common baseline for banks and supervisors in managing third-party risks,” he said.
The Basel Committee said it is continuing to work on a framework for disclosing climate-related financial risks.