According to a report by the UK-based news agency Reuters, new crypto regulation is at the door in the European Union. According to the new bill that parliament will vote on, banks providing crypto services will have to set aside some fiat money to cover these assets.
The new bill, prepared by the EU Parliament, is based on the Basel III agreement, which obliges banks to hold extra capital to cope with global shocks. cryptocurrencies will pave the way for its implementation.
As a result of the change, banks will have to hold 1.25 times the monetary value of cash if they have 1 unit of crypto money due to risk weight. Thus, in a possible shock, the bank will not be able to go bankrupt, and customers will not suffer.
Regulation or Restriction?
The decision that the European Union is about to take is being discussed on social media. Crypto advocates are worried that the new regulation will deter companies from providing crypto services. However, another segment supports the reserve requirement regulation prepared by policy makers considering a possible collapse.
EU MP Markus Ferber, thanks to the new regulation “a possible crisis in crypto” believes that it is prevented from moving to the traditional financial system.
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