Lawmakers at the EU's EP_Economics have voted to impose 'prohibitive' capital requirements on banks holding crypto. jackschickler reports.
The European Parliament's Economic and Monetary Affairs Committee voted to impose strict restrictions on banks seeking to hold crypto., are a bid to anticipate international norms that would limit the amount of unbacked assets such as bitcoin and ether lenders can hold before the European Commission proposes more extensive rules.
In the meantime, “banks will be required to hold a euro of own capital for every euro they hold in crypto," Markus Ferber, the economic spokesperson for the parliament's largest political grouping, said in a statement. “Such prohibitive capital requirements will help prevent instability in the crypto world from spilling over into the financial system.
“There is no definition of crypto assets in the [legislation] and therefore the requirement may apply to tokenized securities, as well as the non-traditional crypto assets the interim treatment is targeted at,” AFME said in an emailed statement, calling for drafting issues to be dealt with later in the legislative process.
In order to pass into law, the measures still need approval from the European Parliament and also have to be negotiated with national finance ministers who meet in the Council of the European Union , as part of a fuller package of bank capital reforms.
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