New Rules for Cryptocurrencies from the European Union

A new regulation is coming to banks that hold crypto money and make transactions with crypto money. The regulation, approved by the European Parliament Committee, imposes a requirement on banks to allocate capital equal to the value of the cryptocurrency they hold. So why?

2022 has not been a good year for crypto investors. Because events such as the bankruptcy of Terra (LUNA) and FTX, on the one hand, caused a loss to the investor, and on the other hand, to the sector. broke the trust. Parallel to all these, regulation discussions began. The latest news is about the European Union’s cryptocurrencies. an important regulation proved that it was about to be implemented.

The European Parliament (EP) Committee has made an important issue regarding banks that allow cryptocurrency-related transactions. approved the edit. This regulation imposes an important rule on banks that hold or allow cryptocurrency trading. The regulation, which will be opened to the approval of EU member states after being approved in the General Assembly, aims to protect investors.

The regulation imposes capital requirements on banks holding cryptocurrencies!

The regulation, approved by the European Parliament, imposes capital requirements on banks. Let’s say a bank has $1 billion in Bitcoin. According to the regulation, the bank It will allocate $1 billion in capital only for Bitcoin. Thus, the bank and its customers will be protected in case of possible shocks. In addition, banks can determine the amount of crypto money they have and what services they offer related to crypto money. transparent They will have to explain somehow.


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As a matter of fact, the amount of cryptocurrency each bank holds. 1250 percent It is recommended to allocate capital. However, AP has considered 100 percent of the capital amount to be a reasonable level. If the European Union countries accept the regulation and put it into effect, banks As of 2025 will begin to allocate capital as much as the amount of crypto money. If the regulation goes into effect, it will be covered by Basel III, an internationally agreed upon agreement after the 2008 crisis.

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