1. PixelPlaygroundHome
  2. Metaverse Insights

EU Urges Rapid Implementation of Capital Rules for Banks Holding Encrypted Assets

• Metaverse Insights • 116 views

It is reported that the EU administrative department said that if Europe wants to avoid missing the globally agreed deadline, it must rapidly implement the cap…

EU Urges Rapid Implementation of Capital Rules for Banks Holding Encrypted Assets

It is reported that the EU administrative department said that if Europe wants to avoid missing the globally agreed deadline, it must rapidly implement the capital rules for banks holding encrypted assets in the EU’s pending banking law. It is reported that the Global Basel Committee, composed of banking regulators in the world’s major financial centers, has set a deadline of January 2025 for the implementation of the bank’s capital requirements for crypto assets such as stable currency and bitcoin. The standards of the Basel Accord are legally applicable in the EU, and the delay may mean that banks have to wait longer to enter the crypto market, because the EU’s separate rules on crypto asset transactions will come into force in 2024. In order to implement the Basel cryptocurrency rules, the EU can propose a new law, or expand the banking law it is currently finalizing according to the requirements of the European Parliament.

EU calls for rapid cryptocurrency capital rules for banks

Interpretation of the news:


The EU administrative department recently urged the EU to swiftly implement the capital rules for banks holding encrypted assets in the EU’s pending banking law, in order to meet the globally agreed deadline of January 2025 for the implementation of the bank’s capital requirements for crypto assets. The Basel Committee, which is made up of banking regulators from major financial centers around the world, set this deadline. Failure to meet this deadline could mean delays for banks looking to enter the crypto market, as the EU’s separate rules on crypto asset transactions will only come into force in 2024.

The capital rules for banks dealing with crypto assets like stable currency and bitcoin will be legally applicable in the EU under the Basel Accord. The EU can meet these standards by proposing a new law, or by expanding the banking law that is currently being finalized according to the requirements of the European Parliament.

This message highlights the need for the EU to stay on track with global regulatory standards when it comes to crypto assets. It also emphasizes that banking regulations will play a crucial role in determining how banks can interact with these new assets. For banks looking to invest or trade in the crypto market, proper capital requirements will be essential in managing risk and maintaining stability.

Moreover, the message suggests that the EU is taking a cautious but proactive approach towards regulating this emerging industry, as demonstrated by the planned separate rules on crypto asset transactions. This is likely to help build trust in the market and provide a level of confidence to investors that their capital is protected by robust regulations.

In summary, the EU’s urgency to implement capital rules for banks holding encrypted assets underscores the importance of maintaining global regulatory standards in this burgeoning industry. The EU’s planned separate rules on crypto asset transactions suggest a proactive approach to regulation that will help build trust in the market and protect investors. The message is a reminder that proper banking regulations are crucial for managing risk and maintaining stability in the fast-evolving world of crypto assets.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/1861/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 02/20/2023 14:11
Next 02/20/2023 14:25

Recommended articles