The Committee on Economic and Monetary Affairs of the European Parliament has voted in favor of measures that oblige banks that handle cryptocurrencies to reserve a punitive amount of capital.
In a Jan. 24 notification, the European Parliament announced that the committee had voted overwhelmingly in favor of amendments to its Capital Requirements Regulation and the Capital Requirements Directive applicable to banks holding cryptocurrencies. Under a bill, banks would be required to maintain a “risk-weighted exposure amount” of up to 1,250% of capital based on cryptocurrency exposure.
On Tuesday 24/01 @EP_Economics
adopted changes to Capital Requirements Regulation (w/ 1/41/14) & Directive (2/49/7) #CRR & #CRD @jonasfernandez MEPs ready for negotiations w/ #EU2023SEhttps://t.co/bY4Y47can9— ECON Committee Press (@EP_Economics) January 24, 2023
The legislative institution said the changes were in line with those of the Basel Committee on Banking Supervision, or BCBS, the body responsible for international banking standards. The group published consultation papers in 2019, 2021, and 2022 that explored the division of crypto assets into groups and recommended how banks should address potential risks. The BCBS reported that banks’ exposure to crypto assets as of 2021 was over $9 billion.
“Members of the European Parliament also want banks to disclose their exposure to crypto assets and crypto asset services, as well as a specific description of their risk management policies related to crypto assets,” said the legislative body. The Commission was invited to submit a legislative proposal by June 2023 on a specific prudential treatment for exposures to crypto assets.”
The full European Parliament will have to vote on the proposed amendments for them to become law. The approval by the Committee on Economic and Monetary Affairs came after EU lawmakers made progress in October 2022 on the regulatory package for the Crypto Asset Markets, or MiCA, following a vote by the European Council; The law is expected to help create a coherent regulatory framework for cryptocurrencies among EU member countries.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.