MEPs agreed a transitional prudential regime to protect the financial system from “unsecured cryptocurrencies” and reduce the risks for banks holding such assets.
On Tuesday 27/06 @EP_Economics negotiators struck a deal
on changes to Capital Requirements Regulation & Directive #CRR & #CRD @jonasfernandez w/ #EU2023SE details will follow pic.twitter.com/7eRCgk7Eg5— ECON Committee Press (@EP_Economics) June 27, 2023
As part of the established capital requirements, banks will be required to “disclose information about their interaction with cryptoassets.” Deputies promised to provide additional details later.
The new rules will remain in effect until a specific legislative proposal is made by the European Commission and its subsequent harmonization with the standards Basel IIIthe introduction of which is scheduled for January 1, 2025.
The current preliminary agreement must be approved by the Committee on Economic and Monetary Affairs, and then it will be discussed at the plenary meeting of the member states of the EU Council.
“The goal is to eliminate the potential risks for institutions caused by their interaction with crypto assets that are not sufficiently covered by the existing prudential system,” commented the European Parliament.
Recall that in January, the legislators of the European Parliament voted for tough norms for providing capital from cryptocurrency-owning banks in the EU. The amendment assumed the application of a risk weighting factor of 1250% in relation to crypto assets.
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