The European Union (EU) has announced a new interim agreement that aims to strengthen the resilience of EU banks in the face of economic shocks and to implement international standards within the framework of Basel III.
EU lawmakers have signed an agreement on capital requirements for EU banks holding cryptocurrencies.
In addition to protecting the banking system, the agreement also takes into account the unique conditions of the EU economy, especially with regard to cryptocurrencies.
One of the key aspects of the deal concerns capital requirements for banks dealing in crypto assets. Aware of the growing importance and potential risks associated with cryptocurrencies, the interviewees stressed the need for greater transparency.
As a result, banks will now be required to disclose their exposure to cryptoassets. In addition, the Commission was tasked with developing a proposal to address the precautionary treatment of these assets during the transition period, based on future Basel standards.
Referring to risk assets such as backed cryptocurrencies, the MEPs said, “The Commission should prepare a relevant legislative proposal to implement these future Basel standards and determine the precautionary treatment of such risks during the transition period.”
The announcement was made in a tweet by the European Parliament's Committee on Economic and Monetary Affairs, stating that “details of the deal will be announced later”.
*Not investment advice.