The European Parliament’s Economic and Financial Affairs Committee has voted in favor of measures that would require banks holding cryptocurrencies to set aside a capital penalty.
In a notice dated January 24, the European Parliament announced The committee voted overwhelmingly in favor of amendments to its Capital Requirements Regulation and Capital Requirements Directive applicable to banks holding crypto. According to a draft law, banks will be required. Catch A “risk-weighted exposure amount” of up to 1,250% of capital based on crypto exposure.
On Tuesday 24/01 @EP_Economics
Adopted Changes in Capital Requirements Regulation (w/ 41/1/14) and Directive (49/2/7) #CRR And #CRD @jonasfernandez MEPs ready for talks #EU2023SEhttps://t.co/bY4Y47can9
— ECON Committee Press (@EP_Economics) January 24, 2023
The legislative body said the changes are in line with the Basel Committee on Banking Supervision, or BCBS, the body responsible for international banking standards. The group issued consultation papers in 2019, 2021 and 2022 which Explored the division of crypto-assets into groups. and suggests how banks should deal with potential risks. BCBS Reported That by 2021 banks’ exposure to crypto assets was over $9 billion.
“[Members of the European Parliament] It also wants banks to disclose crypto-assets and crypto-asset services, as well as specific explanations of their risk management policies related to crypto-assets,” the lawmaker said. The Commission was invited to propose legislation on a dedicated precautionary treatment for exposure to crypto-assets by June 2023.
Related: A member of the ECB’s Executive Board outlined plans for a digital euro in the European Parliament.
The proposed amendments will have to be voted on by the full European Parliament to become law. Approval from the Committee on Economic and Financial Affairs EU lawmakers followed suit in October 2022. Following the European Council’s vote on the Markets in Crypto-Asset Framework, or MICA — the law is expected to help create a consistent regulatory framework for crypto among EU member states. Help will come.
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