EU lawmakers have voted to impose stricter capital requirements on banks holding cryptocurrencies. Reuters topic
In an effort to “prevent instability in the crypto world from spilling over into the financial system,” says Markus Faber, economic spokesman for the European People’s Party of the EU Parliament, “banks will have to have a euro for every euro they invest in crypto.” keep.”
Lawmakers point to the chaos seen in markets over the past few months as further evidence that such regulation is necessary. With events such as the elimination of FTX, Celsius And others Fresh in the minds of consumers, the passage of the law is expected to be part of a larger set of regulations aimed at bringing the EU into line with international norms.
The accepted regulation mirrors that proposed by Jo Basel Committee of the Bank for International Settlements, which also suggested the highest possible risk weighting for holdings of “unbacked crypto”. Their recommendations put a 2% cap on Tier 1 capital that can be denominated in unbacked cryptocurrencies.
I have no definition of crypto assets. [legislation] And so this requirement may apply to tokenized securities as well as non-traditional crypto-assets targeted for transitional treatment,” said the Association for Financial Markets in Europe (AFME), an EU lobby group that advocates for investment banks. represents financial organizations like that, indicating that the current form of the law may be unclear, but that draft issues may be ironed out later.
While the European Parliament’s Economic and Financial Affairs Committee voted to approve the measures, to be fully implemented, they must also be approved by the European Parliament as a whole, and national finance ministers in the Council. should be presented at the meeting. of the European Union.
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