EU Restriction on Cryptocurrency: Tough Law in Final Stage!

A bill by European Union (EU) lawmakers proposing more restrictive capital requirements for banks holding cryptocurrencies has been passed by the committee. The approval of the European Parliament is awaited for the bill to become law.

It will be applied to banks holding cryptocurrencies in a session initiated by the Economic and Monetary Committee of the European Parliament on January 24. Capital Requirements Regulation and Capital Requirements DirectiveAbout changes to voted. The overwhelming majority approved the bill.

In order for this bill approved by the Committee to become a law, European ParliamentIt also needs to be approved. Parliament is a member of the European Union for today 27 states in total from 705 representatives and proposed changes voting by the entire parliament to enact Waiting. In case the bill passes the final stage and becomes a law from 2025 expected to be implemented.

According to the draft law accepted by the majority in the committee banks, capitalization according to the amount they are affected by the cryptocurrency. 1,250%until “risk-weighted exposure amount” they will have to hold it.

Parliament, these changes Basel Committee on Banking Supervision (BCBS) requires banks to disclose a specific definition of their risk management policies regarding cryptoassets. In the BCBS published report, banks’ exposure to crypto assets by 2021 more than $9 billion also reported that.

On the other hand, if the bill is fully approved, EU member states establishing a coherent regulatory framework for crypto between MiCA It is expected to help guide the legislation.

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