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EU banks will require to comply with strict rules to hold Cryptocurrencies

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EU banks will require to comply with strict rules to hold Cryptocurrencies 10

An amendment to impose strict rules on the EU banks so that banks can easily manage crypto holding risks under the high volatility situations.

The European Union (EU) is a very big region in the world, where the Crypto sector is still running under traditional financial rules. In some EU countries, Crypto companies are operating their business without any regulatory framework. The EU’s Markets in Crypto Assets (MiCA) already developed a Crypto regulatory framework but that law may come into effect in 2024.

On 23 Jan 2023, Reuters reported that a bill slipped in before the vote proposing that EU-based banks should apply a risk-weighting of 1,250%to digital assets exposures. 

If this bill gets into effect in the future then all the European Banks will be subject to comply with this rule to hold funds up to the risk-weighting of 1,250%, so that they can easily handle the risk management. 

This amendment also has a provision for the European Commission to see whether proposed crypto-holding rules are enough or if there is any need to introduce some more legislation. 

Earlier this a similar kind of amendment was proposed by a Switzerland-based group, to impose new rules & guidelines on the Banks to manage their Crypto holding risk exposure. 

France & Crypto regulation

On 5 Jan 2023, Francois Villeroy de Galhau, the governor at the Bank of France, talked about the need for Crypto regulation.

The governor said that huge numbers of crypto companies operate their business under traditional laws & policies, so to ensure the safety of the citizens there is a need to develop the Crypto regulation framework.

Francois Villeroy noted that it will take a huge time for MiCA’s Crypto regulation to come into effect and the country can’t wait. 

Read also: Grayscale CEO says SEC ruling degrading Bitcoin adoption

EU banks will require to comply with strict rules to hold Cryptocurrencies

 

https://bitcoinik.com/eu-banks-will-require-to-comply-with-strict-rules-to-hold-cryptocurrencies/feed/

https://bitcoinik.com/eu-banks-will-require-to-comply-with-strict-rules-to-hold-cryptocurrencies/feed/

 

 

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