EU Reaches Agreement on Crypto Assets Regulation in Banking Sector
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June 28, 2023

MEPs have agreed on a transitional prudential regime to protect the financial system from "unbacked cryptocurrencies" and reduce risks for banks holding such assets.

As part of the established capital requirements, banks will be required to "disclose information about their interaction with crypto assets." It should be noted that MPs have promised to provide additional details at a later date.

The new rules will be in place pending a specific legislative proposal by the European Commission and their subsequent harmonization with Basel III standards, which are scheduled to be implemented by January 1, 2025.

The preliminary agreement must be approved by the Economic and Monetary Affairs Committee, and will later be discussed at the plenary meeting of the EU Council member states.

The European Parliament has stated:

"The aim is to eliminate potential risks for institutions caused by their interaction with crypto assets that are not sufficiently covered by the existing prudential system."

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