EU lawmakers vote for more restrictive capital requirements on banks holding crypto

The Economic and Monetary Affairs Committee of the European Parliament has voted for measures requiring banks holding cryptocurrencies to acceptable speech a punitive magnitude of capital.

In a Jan. 24 notice, the European Parliament announced the committee had voted overwhelmingly successful favour of amendments to its Capital Requirements Regulation and Capital Requirements Directive applying to banks holding crypto. According to a draught law, banks would beryllium required to hold a “risk-weighted vulnerability amount” of up to 1,250% of superior based connected vulnerability to crypto.

On Tuesday 24/01 @EP_Economics
adopted changes to Capital Requirements Regulation (w/ 41/1/14) & Directive (49/2/7) #CRR & #CRD @jonasfernandez MEPs acceptable for negotiations w/ #EU2023SEhttps://t.co/bY4Y47can9

— ECON Committee Press (@EP_Economics) January 24, 2023

The legislative instauration said the changes were successful enactment with those from the Basel Committee connected Banking Supervision, oregon BCBS, the assemblage liable for planetary banking standards. The radical released consultation papers successful 2019, 2021, and 2022 which explored dividing crypto assets into groups and recommending however banks should code imaginable risks. BCBS reported that banks’ vulnerability to crypto assets arsenic of 2021 was much than $9 billion.

“[Members of the European Parliament] besides privation banks to disclose their vulnerability to crypto-assets and crypto assets services arsenic good arsenic a circumstantial statement of their hazard absorption policies related to crypto-assets,” said the legislative body. The Commission was invited to taxable a legislative connection by June 2023 connected a dedicated prudential attraction for exposures to crypto-assets.”

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The afloat European Parliament volition person to ballot connected the projected amendments successful bid for them to go law. Approval from the Economic and Monetary Affairs Committee followed EU lawmakers successful October 2022 moving guardant connected the Markets successful Crypto-Assets framework, oregon MiCA, pursuing a ballot from the European Council — the instrumentality is expected to assistance make a accordant regulatory model for crypto among EU subordinate states.