EU Lawmakers Vote To Impose Strict Capital Requirements On Banks Holding Bitcoin And Crypto
Banks would be allowed to hold 2% of capital in bitcoin, but required to have one euro in capital for every euro in cryptocurrency held.
European Union lawmakers have voted to impose strict capital requirements on banks that hold cryptocurrencies, per a Reuters article.
In an effort to prevent instability in the crypto world from spilling over into the financial system, Markus Ferber, economic spokesperson for the EU parliament's European Peoples Party, says, banks will be required to hold a euro of own capital for every euro they hold in crypto.
Lawmakers cite the chaos in the markets seen over the last few months as further evidence that such regulation is necessary. With events like the collapse of FTX, Celsius and others fresh in the minds of users, the passing of this law is anticipated to be part of a larger set of regulations aimed at bringing the EU into line with international norms.
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