EU Banks Must Comply With Stiffer Regulations Regarding Their Crypto Holdings
Key Points:
- MPs agreed that banks holding cryptocurrency must adhere to severe legislation to maintain capital needs.
- European Commission should “examine whether a dedicated prudential approach for crypto assets would be needed and to develop, if suitable, a legislative proposal to this purpose.”
Following a vote in a committee of the European Parliament on Tuesday, MPs agreed that banks holding cryptocurrency must adhere to severe legislation to maintain capital needs.
According to Reuters, an amendment to a measure governing financial capital requirements for traditional institutions was sneaked in before the vote and suggested that banks apply a risk-weighting of 1,250% to exposures to crypto-assets. This means that banks will need to be able to cover a shortfall with capital reserves and not be able to develop leverage when the laws take effect. The Basel Committee on Banking Supervision, which establishes global banking regulations, advocated the % as the highest level of securitization. Basel III changes.
According to the draft report, the bill also specifies that the European Commission should “examine whether a dedicated prudential approach for crypto assets would be needed and to develop, if suitable, a legislative proposal to this purpose.”
The organization, which is based in Switzerland, published a report in December that included fresh recommendations for how banks should handle their exposure to digital assets.
The Basel Committee’s work will continue to be mentioned by EU politicians.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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EU Banks Must Comply With Stiffer Regulations Regarding Their Crypto Holdings
Key Points:
- MPs agreed that banks holding cryptocurrency must adhere to severe legislation to maintain capital needs.
- European Commission should “examine whether a dedicated prudential approach for crypto assets would be needed and to develop, if suitable, a legislative proposal to this purpose.”
Following a vote in a committee of the European Parliament on Tuesday, MPs agreed that banks holding cryptocurrency must adhere to severe legislation to maintain capital needs.
According to Reuters, an amendment to a measure governing financial capital requirements for traditional institutions was sneaked in before the vote and suggested that banks apply a risk-weighting of 1,250% to exposures to crypto-assets. This means that banks will need to be able to cover a shortfall with capital reserves and not be able to develop leverage when the laws take effect. The Basel Committee on Banking Supervision, which establishes global banking regulations, advocated the % as the highest level of securitization. Basel III changes.
According to the draft report, the bill also specifies that the European Commission should “examine whether a dedicated prudential approach for crypto assets would be needed and to develop, if suitable, a legislative proposal to this purpose.”
The organization, which is based in Switzerland, published a report in December that included fresh recommendations for how banks should handle their exposure to digital assets.
The Basel Committee’s work will continue to be mentioned by EU politicians.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
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