EU calls for fast-track crypto capital rules for banks
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- 21 Feb 2023
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Tough capital rules for banks holding cryptoassets must be fast-tracked in the European Union's pending banking law if Europe wants to avoid missing a globally-agreed deadline, the bloc's executive has said.
The global Basel Committee of banking regulators from the world's main financial centres has set a January 2025 deadline for implementing capital requirements for banks' exposures to cryptoassets such as stablecoins and bitcoin.
"For the time being, banks have very low crypto-asset exposures and only a limited involvement in providing crypto-asset-related services," the European Commission said in an informal discussion paper seen by Reuters.
"Banks have expressed interest in trading crypto-assets on behalf of their clients and to provide crypto-assets-related services."
Basel's standards are applied in the EU with a law, and a delay could mean that banks have to wait longer to enter the cryptomarket as separate EU rules for trading cryptoassets come into force in 2024.
To enforce Basel's crypto rules, the EU could either propose a new law, or expand the banking law it is now finalising as called for by the European Parliament. Read More…
