Regulations News

EU regulators vote to impose stricter rules on banks holding crypto

While the vote on MiCA has been once again pushed back, this time to April citing technical issues, the European Parliament’s Economic and Monetary Affairs Committee is voting to impose new restrictions on banks holding or seeking to hold crypto assets. Reuters reported that, in order to cover a complete loss of value, banks will need to apply 1,250% risk-weight to the crypto holdings. They will also need to issue one euro of capital for each euro of crypto asset held.

This is the highest rate of securization under the global banking rules set by the Basel Committee on Banking Supervision, which sets the standards for the banking industry. The regulators want to mitigate the risk and possible downfall of crypto assets that they consider as very high-risk. But they also want to limit the bank’s crypto holding through these “prohibitive capital requirements“.

Stay ahead of the game with our Crypto News.
Boost your knowledge about Crypto with our Crypto Encyclopedia.


Greetings, I go by the name of Flavien - a devoted supporter of cryptocurrency and a tech aficionado who has been keeping track of the developments in the world of blockchain and digital currencies since 2019. The potential of decentralized digital currencies to revolutionize our financial systems has captivated me, and I'm constantly exploring the most recent trends and advancements in this ever-evolving industry. As a content creator for Krypto Channel, my aim is to deliver informative and engaging articles that shed light on all aspects of the crypto world. Whether you're a seasoned investor or simply curious about blockchain technology, I am here to keep you updated on the latest happenings and trends. Being part of this lively and dynamic community is an honor, and I am thrilled to share my passion for cryptocurrency and blockchain with all of you.
Back to top button