Basel Committee on Banking Supervision

Basel Framework

The Basel Framework is the full set of standards of the Basel Committee on Banking Supervision (BCBS), which is the primary global standard setter for the prudential regulation of banks. The membership of the BCBS has agreed to fully implement these standards and apply them to the internationally active banks in their jurisdictions. The background page describes the framework's structure and how to navigate it.

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Disclosure requirements
DIS55

Cryptoasset exposures

This chapter describes disclosure requirements for banks' exposures to cryptoassets.

  • Effective as of: 01 Jan 2026
  • Last update: 17 Jul 2024
  • Status Current
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Introduction

55.1

The disclosure requirements set out in this chapter are:

  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.

Table CAEA: Qualitative disclosure on a bank's activities related to cryptoassets and the approach used in assessing the classification conditions

TABLE.1

Purpose: To provide an overview of the bank's activities related to cryptoassets and the main risks related to its cryptoasset exposures as well as the approach used in assessing the classification conditions.

Scope of application: The template is mandatory for all banks with exposures to cryptoassets or cryptoliabilities.

Content: Qualitative information.

Frequency: Annual.

Format: Flexible.

Banks must describe:

(a)

Their business activities related to cryptoassets, including inter alia owning cryptoassets directly, trading of cryptoassets on clients' accounts, equity investments in cryptoasset activities (eg cryptoasset exchanges and fund managers of cryptoasset exchange-traded funds) and the issuance of cryptoassets by the bank (ie cryptoliabilities of the bank). Banks must explicitly state if the bank is a member of cryptoasset arrangements as described in SCO60.36, acting as an intermediary in the redemption of cryptoassets. In such cases, banks must describe their role and the extent of any commitments to redeem or purchase back cryptoassets that may result from those activities.

(b)

For each activity in (a), how the activity translates into components of the bank's risk profile (including, but not limited to, credit, market, operational and/or liquidity risks) and the associated risk management policies (including, but not limited to, strategies and processes to manage, hedge and mitigate risks that arise from the bank's business activities and the processes for monitoring the continuing effectiveness of hedges and mitigants).

(c)

Scope and main content of the bank's reporting related to cryptoassets, including, but not limited to, how business activities result in the bank having cryptoasset exposures covered under the scope of the prudential treatment of cryptoassets and/or any material exposures to specific cryptoassets.

(d)

The most significant current risk(s) associated with the bank's activities related to cryptoassets and the bank's cryptoasset exposures and how this current risk is being managed.

(e)

The most significant emerging risk(s) associated with the bank's activities related to cryptoassets and the bank's cryptoasset exposures and how this emerging risk is being managed.

(f)

For exposures to Group 1 cryptoassets, the bank's approach to assessing each of the following classification conditions for each cryptoasset, including any public information used but excluding any confidential and proprietary information:       

i)        Classification condition 1 SCO60.8 to SCO60.13

ii)       Classification condition 2 SCO60.14 to SCO60.15

iii)      Classification condition 3 SCO60.16 to SCO60.17

iv)      Classification condition 4 SCO60.18 to SCO60.19
   

Template CAE1: Cryptoasset exposures and capital requirements

TABLE.2

Purpose: To provide an overview of a bank's exposures to cryptoassets according to the prudential classification of the cryptoassets (Groups 1a, 1b, 2a and 2b) and the related capital requirements.

Scope of application: The template is mandatory for all banks with exposures to cryptoassets.

Content: Exposures and capital requirements applicable to the bank's cryptoasset exposures excluding liquidity requirements which are contained in Template CAE3.

Frequency: Semiannual.

Format: Flexible.

Accompanying narrative:

  • Due to the difficulty of disaggregating operational risk risk-weighted assts (RWA) related only to cryptoasset exposures, banks are expected to supplement the template to explain their policies and risk mitigation used in their management of operational risk related to cryptoasset exposures.
  • Banks are expected to supplement the template with a narrative commentary to explain any significant changes over the reporting period and the key drivers of such changes.
  • When authorities apply the infrastructure add-on outlined in SCO60.52 to SCO60.53 to Group 1 cryptoassets, banks must disclose the RWA amount resulting from these requirements.
  • Banks should provide the aggregated level of cryptoassets under custody (market value of cryptoassets that the bank holds in custody for clients at the end of the reporting period) as part of the accompanying narrative. This narrative should cover the types of cryptoassets under custody (eg tokenised traditional assets, stablecoins and other cryptoassets separately).
   

a

b

c

d

e

f
   

Credit risk

Market risk
   

Total exposure

Exposure/EAD

RWA

Long exposure

Short exposure

RWA

1

Group 1a

            

2

Group 1b

            

2.i

Of which:

Cryptoasset XXX

            

2.ii

Of which:

Cryptoasset YYY

            
 

...

            

3

Group 2a

            

3.i

Of which:

Cryptoasset XXX

            

3.ii

Of which:

Cryptoasset YYY

            
 

...

            

4

Group 2b

            

4.i

Of which:

Cryptoasset XXX

            

4.ii

Of which:

Cryptoasset YYY

            
 

...

            

5

TOTAL

            

6

Group 2 exposure limit – direct holdings

    

7

Group 2 exposure limit – indirect holdings

    

8

Group 2 exposure limit – exposure above the 1% limit

    

9

Group 2 exposure limit – RWA above the 1% limit

    

10

Total RWA for Group 2 as a result of breaching the 2% limit

    
               

Instructions

  • The balance sheet and regulatory amounts reported in the template should reflect the values as at the reporting period end. Banks should also complete this template using mean values calculated as of each day of the reporting period for item 3 Group 2a (column d Long exposure and column e Short exposure) and item 4 Group 2b (column a Total exposure, column d Long exposure and column e Short exposure). For items 3 and 4, mean values calculated as of each day of the reporting period should be used when reporting both aggregate values and any material cryptoasset exposures.
  • In addition to the separate disclosure requirements set out in this template that apply to all Group 1a, 1b, 2a and 2b cryptoassets, banks must include exposures to Group 1 cryptoassets in the relevant existing disclosure templates that apply to traditional assets (eg for credit risk and market risk).
  • For cryptoassets belonging to Groups 1b, 2a and 2b, additional rows should be added for each material exposure to stablecoins and unbacked cryptoassets by individual cryptoasset, where permitted under a jurisdiction's laws. For Group 1b cryptoassets, a material exposure is defined as per Principle 3, DIS10.18. For the purpose of this template, a Group 2 cryptoasset is considered to be a material exposure where the following two stages are met:

    1. A bank's Group 2 exposure limit calculated in accordance with SCO60.116 to SCO60.119 is equal to or greater than 0.3%. For the purpose of determining whether a Group 2 cryptoasset is a material exposure, the Group 2 exposure limit should be calculated as at the end of the reporting period.

    2. A bank's exposure to an individual Group 2 cryptoasset is greater than 5% of total Group 2 cryptoasset exposures. For this purpose, Group 2 cryptoasset exposures should be calculated in accordance with SCO60.119 as at the end of the reporting period.

Any tokenised traditional asset included in Group 2a or Group 2b as a result of not meeting the classification conditions does not need to be separately disclosed, but the relevant amounts must be reported in the total rows for Group 2a and Group 2b (ie row (3) and row (4)).

  • Given that RWA for counterparty credit risk (CCR) and credit valuation adjustment risk (CVA) are calculated on a portfolio basis, it is not possible to separately identify the amounts related to cryptoassets. The CCR and CVA amounts are therefore excluded from the scope of this template.

Columns

  • (a) Total exposure: on- and off-balance sheet items that give rise to a credit risk exposure according to the finalised Basel Framework. The amount must be gross of any credit conversion factor (CCF) or credit risk mitigation (CRM) techniques. For Group 2a cryptoassets, the total exposure reported in this column should reflect only: (i) the credit exposure arising from the risk of default of the redeemer and the risks arising when intermediaries perform the redemption function for the bank's Group 2a cryptoasset exposures as specified in SCO60.82; and (ii) the exposure that arises when banks are members of a cryptoasset arrangement for the banks' Group 2a cryptoasset exposures as specified in SCO60.37. For Group 2b cryptoassets, banks should report the greater of the absolute value of the aggregate long positions and the absolute value of the aggregate short positions.
  • (b) Exposure/exposure at default (EAD) post CRM and post CCF: the exposure amount or EAD relevant for the capital requirements calculation. For Group 2a cryptoassets, the exposure/EAD reported in this column should reflect only: (i) the credit exposure/EAD arising from the risk of default of the redeemer and the risks arising when intermediaries perform the redemption function for the bank's Group 2a cryptoasset exposures as specified in SCO60.82; and (ii) the exposure/EAD that arises when banks are members of a cryptoasset arrangement for the banks' Group 2a cryptoasset exposures as specified in SCO60.37.
  • (c) Credit risk RWA: RWA according to the credit risk standard of the Basel Framework (CRE). For Group 2a cryptoassets, the total RWA reported in this column should reflect only: (i) the credit RWA arising from the risk of default of the redeemer and the risks arising when intermediaries perform the redemption function for the bank's Group 2a cryptoasset exposures as specified in SCO60.82; and (ii) the credit RWA that arises when banks are members of a cryptoasset arrangement for the banks' Group 2a cryptoasset exposures as specified in SCO60.37. For Group 2b cryptoassets, total RWA will be reported in this cell, as in compliance with SCO60.83 there is no separate trading book and banking book treatment for Group 2b cryptoassets. The conservative treatment is intended to capture both credit and market risk, including CVA risk. For consistency, the RWA calculated under this approach must all be reported as part of the bank's credit RWA. Nevertheless, for Group 2b cryptoassets banks must report the aggregated market value of gross long and short positions in the trading book in columns (d) and (e), respectively. This is because to compute RWA banks must apply the risk weight of 1,250% to the greater of the absolute value of the aggregate long positions and the absolute value of the aggregate short positions in the cryptoasset.
  • (d) Market risk – long exposure: aggregated market value of gross long positions in the trading book by cryptoasset group and activity type. Derivative exposures should be calculated in accordance with SCO60.85.
  • (e) Market risk – short exposure: aggregated market value of gross short positions in the trading book by cryptoasset group and activity type. Derivative exposures should be calculated in accordance with SCO60.85.
  • (f) Market risk – RWA: includes the market risk RWA calculated for trading book and banking book exposures that are subject to market risk capital requirements in MAR10 to MAR40, taking into account the requirements of SCO60. Since the market risk framework does not refer to RWA, banks should indicate the derived RWA number (ie by multiplying the capital charge by 12.5). As market risk is calculated on a portfolio basis, it will not always be possible to calculate standalone market RWA for Group 1a and Group 1b cryptoassets, and so the relevant cells in this column have been greyed out. Similarly, for Group 2b cryptoassets, SCO60.83 requires the RWA to be reported as credit risk, and so these cells are also greyed out. By contrast, the dedicated market risk treatment for Group 2a cryptoassets should allow RWA amounts for these exposures to be reported.

Rows

  • Group allocation: this classification relates to the classification of cryptoassets into groups according to SCO60.6. The assigned group depends on the type of cryptoasset and whether the four classification conditions are met. If all four classification conditions are met and the cryptoasset is a tokenised traditional asset, then the relevant amounts must be reported in Group 1a. If all classification conditions are met and the cryptoasset has an effective stabilisation mechanism, the relevant amounts must be reported in the Group 1b row. If at least one of the classification conditions is not met but the cryptoasset passes the Group 2a hedging recognition criteria, the relevant amounts must be reported in the Group 2a row. All other cryptoassets must be reported in the Group 2b row.
  • Rows 2, 3 and 4: the amounts related to all the cryptoassets belonging to those groups (ie not only the sum of each material individual exposure to stablecoins and unbacked cryptoassets included in the template).
  • Group 2 exposure limit – direct holding: aggregate direct holdings of Group 2 cryptoassets subject to the exposure limit according to SCO60.116 to SCO60.119.
  • Group 2 exposure limit – indirect holding: aggregate indirect holdings of Group 2 cryptoassets subject to the exposure limit according to SCO60.116 to SCO60.119 (eg those via investment funds, exchange-traded fund (ETF)/exchange-traded note (ETN), or any legal arrangements designed to provide exposures to cryptoassets).
  • Group 2 exposure limit – exposure above the 1% limit: the bank's total exposure to Group 2 cryptoassets (as calculated in accordance with SCO60.119 above the 1% of the bank's Tier 1 capital.
  • Group 2 exposure limit – RWA above the 1% limit: the bank's RWA calculated in accordance with SCO60.118 related to its exposures to Group 2 cryptoassets that are in excess of the 1% threshold but below the 2% of the bank's Tier 1 capital. Until compliance with the 1% limit is restored, the bank's exposures that are in excess of the threshold will be subject to the capital requirements that apply to Group 2b cryptoasset exposures (as set out in SCO60.83 to SCO60.85). For banks breaching this 1% limit, RWA for exposures in excess of the threshold must not be reported in columns (c) or (f).
  • Group 2 exposure limit – RWA for Group 2 as a result of breaching the 2% limit: the bank's RWA of Group 2 cryptoassets when its exposures exceed 2% of its Tier 1 capital. In this case, all Group 2 cryptoasset exposures will be subject to the capital requirements that apply to Group 2b cryptoasset exposures according to SCO60.118. For banks breaching this 2% limit, final RWA for all Group 2 cryptoassets must be reported in this column. Consequently, banks breaching the 2% limit must not report RWA figures in columns (c) or (f).

Template CAE2: Accounting classification of exposures to cryptoassets and cryptoliabilities

TABLE.3

Purpose: Provide information on the accounting classification and measurement of banks' exposures to cryptoassets and cryptoliabilities.

Scope of application: The template is mandatory for all banks with exposures to cryptoassets or cryptoliabilities.

Content: Carrying values corresponding to the values reported in financial statements but under scope of regulatory consolidation.

Frequency: Semiannual.

Format: Flexible (but the rows must align with the presentation of cryptoassets in the bank's financial report).

Accompanying narrative: Banks are expected to supplement the template with a narrative commentary to explain any significant changes over the reporting period and the key drivers of such changes. In addition, banks must report if there is any accumulated allowance/impairment on exposure measured at amortised cost.
 

a

b

c

d
 

Carrying values under scope of regulatory consolidation
 

Group 1a

Group 1b

Group 2a

Group 2b

Assets

Cash

        

Financial assets

        

Of which: measured at fair value through profit and loss (FVTPL)

        

Of which: measured at fair value through other comprehensive income (FVTOCI)

        

Of which: measured at amortised cost (AC)

        

Intangibles

        

...

        

Total assets

        

Liabilities

Financial liabilities

        

...

        

Total liabilities

        
 

Instructions

Banks must also include Group 1 cryptoassets disclosed in columns (a) and (b) in the relevant templates that apply to traditional assets.

Columns

Group allocation: The assigned group depends on the type of cryptoasset and whether the four classification conditions set out in SCO60.6 to SCO60.22 are met. If all four classification conditions are met and the cryptoasset is a tokenised traditional asset, then it must be reported in Group 1a. If all classification conditions are met and the cryptoasset is a cryptoasset with an effective stabilisation mechanism, it must be reported in Group 1b. If at least one of the classification conditions is not met but the cryptoasset passes the Group 2a hedging recognition criteria, it must be reported in Group 2a. All other cryptoassets must be reported in Group 2b.

Rows

Rows must include only assets and liabilities that are within the scope of SCO60. The rows must follow the balance sheet presentation used by the bank in its financial reporting.

Template CAE3: Liquidity requirements for exposures to cryptoassets and cryptoliabilities

TABLE.4

Purpose: To provide an overview of a bank's exposures to cryptoassets and cryptoliabilities according to the liquidity risk classification.

Scope of application: The template is mandatory for all banks with exposures to cryptoassets and cryptoliabilities.

Content: Key liquidity risk parameters for the relevant categories of cryptoasset as described in SCO60.101 to SCO60.112.To note, the categories of cryptoasset and cryptoliability that are relevant for the liquidity prudential treatment are different from the categories used for credit and market risk.

Frequency: Semiannual.

Format: Fixed.

Accompanying narrative: Banks are expected to supplement the template with a narrative commentary to explain any significant changes over the reporting period and the key drivers of such changes.
   

a

b

c

d

e

f

g

h

i
   

Exposure amounts

Liquidity risk

   

Cryptoassets

Cryptoliabilities

Cryptoassets

Cryptoliabilities
   

Total

Of which: Derivative exposures

Total

Of which: Derivative exposures

LCR HQLA haircut applied

LCR cash inflow rate applied

NSFR RSF factor applied

LCR cash outflow rate

NSFR ASF factor applied

1

Group 1a

                  

1.i

Of which: HQLA instrument

                  

1.ii

Of which: tokenised claims on a bank

                  

1.iii

Of which: other tokenised assets

                  

2

Stablecoins

                  

2.i

Of which: Group 1b

                  

2.ii

Of which: Group 2

                  

3

Other Group 2

                  

Instructions

This template provides an overview of the liquidity risk classification of cryptoassets and cryptoliabilities. Banks must also consider these instruments as part of the relevant disclosure templates for banks' liquidity (see DIS85).

Columns

Asset and liability exposure amounts are the outstanding values at the end of the reporting period.

Inflow rates, outflow rates, haircuts and NSFR ASF and RSF factors are expressed as the weighted average rates of the cryptoasset and cryptoliability categories (weighted by the exposure amounts).

Rows

Row number

Explanation

Relevant paragraphs of SCO60
1 This row is the sum of rows (1.i), (1.ii) and (1.iii). SCO60.102 to SCO60.108
1.i Group 1a cryptoassets that are tokenised versions of HQLA as defined in LCR30.40 to LCR30.47. The calculation and definition of HQLA for LCR and NSFR purposes must align to those in the LCR disclosure standard. SCO60.102 to SCO60.103
1.ii Group 1a cryptoassets or cryptoliabilities that are tokenised claims on a bank. SCO60.107
1.iii Group 1a cryptoassets or cryptoliabilities that are different from those reported in rows (1.i) and (1.ii). SCO60.102 to SCO60.108
2 Cryptoassets or cryptoliabilities that are fully collateralised by a segregated pool of underlying assets that do not count toward the bank's stock of HQLA. This row is the sum of rows (2.i) and (2.ii). SCO60.108  
2.i Stablecoins that qualify as Group 1b.
2.ii Stablecoins that do not qualify as Group 1b cryptoassets due solely to redemption restrictions (ie minimum notice periods).
3 Group 2 cryptoassets or cryptoliabilities other than stablecoins reported in row (2.ii), ie that are subject to the treatment outlined in SCO60.109. SCO60.109

Background to the Basel Framework

The Basel Framework is a consolidated version of the full set of standards of the Basel Committee on Banking Supervision (BCBS), which is the primary global standard setter for the prudential regulation of banks. The membership of the BCBS has agreed to fully implement these standards and apply them to the internationally active banks in their jurisdictions.

Structure

The framework comprises the 14 standards listed below. Each standard is divided into chapters, and many chapters have multiple versions, eg a chapter may have a version that is applicable now and one that will become applicable after the Basel III reforms have been implemented. The full breakdown of all chapters and versions is available here.

If you would like to explore the source material for the consolidated Basel Framework, there is a mapping table that links each of the paragraphs of the BCBS's original published standards to their locations within the first published version the framework.

Other features of the framework include:

  • Interactive cross-references to make it easier to navigate.
  • A "time traveller" feature, which lets you select a future date and see the framework as it is due to apply at that date.
  • Answers to frequently asked questions displayed directly underneath the paragraphs to which they relate.
  • A section to view all past and future planned changes to the Basel Framework.
  • An improved search function, which makes it easier to find specific content in each standard.

If you have any questions or suggestions regarding the consolidated Basel Framework, please let us know at baselcommittee@bis.org.

This standard describes the scope of application of the Basel Framework.

This standard describes the criteria that bank capital instruments must meet to be eligible to satisfy the Basel capital requirements, as well as necessary regulatory adjustments and transitional arrangements.

This standard describes the framework for risk-based capital requirements.

This standard describes how to calculate capital requirements for credit risk.

This standard describes how to calculate capital requirements for market risk and credit valuation adjustment risk.

This standard describes how to calculate capital requirements for operational risk.

This standard describes the simple, transparent, non-risk-based leverage ratio. This measure intends to restrict the build-up of leverage in the banking sector and reinforce the risk-based requirements with a simple, non-risk-based "backstop" measure.

This standard describes the Liquidity Coverage Ratio, a measure which promotes the short-term resilience of a bank's liquidity risk profile.

The net stable funding ratio requires banks to maintain a stable funding profile in relation to the composition of their assets and off-balance-sheet activities.

Large exposures regulation limits the maximum loss that a bank could face in the event of a sudden counterparty failure to a level that does not endanger the bank's solvency. This standard requires banks to measure their exposures to a single counterparty or a group of connected counterparties and limit the size of large exposures in relation to their capital.

This standard establishes minimum standards for margin requirements for non-centrally cleared derivatives. Such requirements reduce systemic risk with respect to non-standardised derivatives by reducing contagion and spillover risks and promoting central clearing.

The Pillar 2 supervisory review process ensures that banks have adequate capital and liquidity to support all the risks in their business, especially with respect to risks not fully captured by the Pillar 1 process, and encourages good risk management.

This standard sets out disclosure requirements, which aim to encourage market discipline.

The Basel Core Principles provide a comprehensive standard for establishing a sound foundation for the regulation, supervision, governance and risk management of the banking sector.

The Basel Framework homepage lists all 14 standards together with a short description of their content. The "effective as of" date is the date by which the members of the BCBS have agreed to implement the standards. By default, this date is set to the launch date of the consolidated framework for standards that were already in force at the launch of the framework. For standards that have chapters that are due to change in the future, a "next version" date is shown.

Click on the name of any standard to get the list of chapters that it contains. By default, you will see the current versions of the standards that are in effect as of the day you are using the website. In cases where new chapter versions are due to come into effect in the future, the chapter can be accessed by clicking the "new future version" link shown at the bottom of the chapter description.

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Navigating the Basel Framework
Navigating the Basel Framework
Video 9 April 2019
Navigating the Basel Framework
This tutorial explains the features of the Basel Committee's consolidated framework, bringing global standards for bank regulation and supervision together in one place.

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