EU Finalizes Agreement on Capital Requirements for Banks Holding Crypto Assets
The EU has agreed on proposals for capital requirements for banks holding crypto assets as they look to safeguard the financial system....
- The European Union (EU) has reached an agreement on new bank-capital legislation, including regulations for cryptoassets.
- The proposed rules aim to prevent unbacked crypto from entering the traditional financial system.
- Negotiators sought to integrate Basel III standards into EU legislation to strengthen the stability of the global banking system.
- The proposed changes include a risk weight of up to 1,250% for cryptocurrencies, meaning banks would have to own over one euro for every equal value of crypto assets.
- The agreement is seen as a major step forward in ensuring banks can operate in light of external shocks, crises, or disasters.
- Member states and the EU parliament still need to vote on the proposals.
The sentiment of the article is mostly neutral. It discusses the proposed regulations for cryptoassets in the EU and the potential impact on banks and the stability of the financial system. There is a mention of concern among policymakers and regulators about the volatility of digital assets, but no strong positive or negative sentiment is expressed.