The European Parliament’s Committee on Economic and Monetary Affairs has voted in favor of measures that require banks that hold cryptocurrencies to set aside a large amount of capital in order to counter potential risks.
In a January 24 notice, the European Parliament announced that the Committee had said it was in favor of making some changes to the Capital Requirements Regulation and Capital Requirements Directive, in relation to banks that hold cryptocurrencies. Under the bill, banks are now required to hold a “risk weighted exposure amount” up to 1,250% of the capital exposed to crypto.
On Tuesday 24/01 @EP_Economics
adopted changes to Capital Requirements Regulation (w/ 41/1/14) & Directive (49/2/7) #CRR & #CRD @jonasfernandez MEPs ready for negotiations w/ #EU2023SEhttps://t.co/bY4Y47can9— ECON Committee Press (@EP_Economics) January 24, 2023
The institution emphasized that changes are in line with Basel Committee on Banking Supervision (BCBS) rules, which is the body responsible for international banking standards. In this regard, the Basel Committee published consultation documents in 2019, 2021 and 2022, providing banks with recommendations on how to approach digital assets and address potential risks.
The Committee on Economic and Monetary Affairs further stated:
“Members of the European Parliament also want banks to disclose their exposure to crypto-assets and crypto-asset services, and present a specific description of their risk management policies related to crypto-assets.”
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The entire European Parliament will now have to vote on the proposed amendments for them to become law. The approval by the Economic and Monetary Affairs Commission follows the introduction of the Markets in Crypto-Assets (MiCA) regulatory framework in October 2022. This law will help establish unitary cryptocurrency laws for all EU member states. ‘EU.
