Breaking news! Bitcoin and Cryptocurrency Decision for Banks

The Bank for International Settlements (BIS) has made an important development in the cryptocurrency and banking industry. The Basel Committee on Banking Supervision (BCBS), a part of the BIS responsible for setting standards for traditional financial institutions, has announced a transparency requirement requiring banks to disclose their digital currency holdings. This move marks a pivotal moment in the regulation of digital currencies in the banking sector.

Cryptocurrency data in balance sheets will be shared

One development stands out in accordance with the new directive outlined in the BCBS report. Banks are obliged to provide BCBS with comprehensive data on the cryptocurrencies they hold on their balance sheets. This requirement aims to increase transparency and accountability in the financial sector.

BCBS acknowledges the evolving nature of the crypto landscape. On the other hand, it reiterated its commitment to monitor and adjust digital currency standards as necessary. The report highlights a banking crisis that occurred in the United States a few months ago. In this context, he emphasizes the importance of digital currencies. This crisis was one of the most significant system-wide banking stresses since the 2008 financial crisis. Additionally, the connection between banks and cryptocurrencies has been identified as a contributing factor.

Signature Bank’s case and the risk of addiction to cryptocurrencies

The report emphasizes the situation of Signature Bank, which announced its bankruptcy on March 12. Accordingly, the report stated that Signature Bank did not fully understand its relationship with the cryptocurrency industry. There is also a reference to the risks associated with addiction to digital currencies. Accordingly, this situation provides a warning example of potential pitfalls for banks operating in the digital currency space.

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Commentators in the traditional finance (TradFi) industry have attributed banking crises, especially in the United States, to uncontrolled and contagious ties between banks and cryptocurrencies. This development reflects the ongoing efforts of traditional financial actors to assert control and influence over the dynamic relationship.

Global impacts and commitments

It should be noted that, as a G20 member, Turkey is obliged to comply with the standards set by the Basel Committee on Banking Supervision. Headquartered in Basel, Switzerland, BCBS consists of 63 central banks from around the world. It is also an international financial institution that represents approximately 95% of the world’s Gross Domestic Product (GDP). This global reach underscores the importance of new cryptocurrency disclosure standards in the international banking environment.

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The introduction of these standards reinforces the increasing role of cryptocurrencies in traditional financial institutions. Additionally, when we look at it as cryptokoin.com, it provides stability and transparency in this developing financial environment. On the other hand, it emphasizes the need for regulatory measures.

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