International regulators propose new transparency measures for banks’ crypto asset exposures, following a tumultuous year marked by banking disruptions linked to digital currencies.
With the sudden growth and popularity of cryptocurrencies like Bitcoin (BTC) and Ether (ETH), international regulators are now turning their attention towards the disclosure of these assets by banks, in a bid to maintain financial stability.
The Basel Committee on Banking Supervision, an influential body that defines norms for traditional financial institutions, has already made its stance clear: banks should maintain potentially hefty capital against their holdings of cryptocurrencies that lack intrinsic backing.
Their recommendations come in the wake of a tumultuous year for the crypto industry, underscored by the downfall of crypto exchange FTX and digital-centric banks like Signature and Silicon Valley Banks. The committee’s concern stems from a desire to prevent widespread financial disturbances – or “contagion” – arising from sudden shocks in the crypto sphere.
In an upcoming consultation paper, the Basel Committee will further delve into this subject, suggesting specific “disclosure requirements related to banks’ crypto asset exposures.” This is in addition to the digital asset capital requirements they finalized in December.
It’s noteworthy that while th
Go to Source to See Full Article
Author: Bralon Hill
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
