EU wants to accelerate cryptocapital regulations for banks

EU wants to accelerate cryptocapital regulations for banks

The EU is working hard to enforce strict capital regulations for banks that keep crypto-assets.

The Global Basel Committee of the Banking Supervisory Authorities of the world's leading financial centers has set a deadline until January 2025. The rules apply to capital requirements for banks that are exposed to cryptocurrencies and stable coins.

According to a Reuters report of February 20, the European Commission explained: "Until further notice, banks have very low crypto-asset exposures and only a limited participation in the provision of crypto-asset-related services" before adding:

"Banks have expressed interest in acting crypto-assets on behalf of their customers and offering services related to crypto-assets."

crypto banking rules come

A setback in regulatory introduction could lead to delays for banks that want to enter the cryptom market. The EU could either propose a new law or expand the banking law that it is now completing, added the report.

According to an informal discussion paper on the new banking law, European Parliament and EU countries are equal. They are supposed to take on negotiations that could soon include crypto-assets.

This would give banks more clarity about crypto-assets and their capital requirements to minimize the risks for customers. However, a separate bill should be available at the end of 2023 at the earliest.

The EU is preparing the introduction of an all-encompassing crypto frameworks called Mica (Markets in Crypto Assets), but that will probably only see the light of day in 2024.

mica was criticized for his exhaustion of privacy, since crypto exchanges and wallets have to provide information about their customers to prevent tax evasion and money laundering.

market prospects

The cryptoma markets have resumed their upward trend with a day win of 2.8 %. At the time of writing this article, the overall capitalization rose to $ 1.19 trillion.

Since the beginning of the year, the market has increased by 44 % to a six -month high. According to Coingecko, Bitcoin leads with an increase of 3 % to just under $ 25,000 at the time of writing this article.

Ethereum exceeded the $ 1,700 mark after a daily increase of 2.3 %. Other old coins that are currently developing well are Ripple (XRP), Avalanche (Avax) and Uniswap (Uni).

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