Historic Decision: European Parliament Votes on Crypto Asset Policies
• The European Parliament’s economic and monetary affairs committee has voted on policies for banks holding digital assets such as Bitcoin and Ethereum.
• Banks with crypto holdings must hold up to 1,250 percent of the amount they hold in crypto assets.
• The Parliament added that the modifications align with the measures by the organization in charge of international banking standards (BCBS, the Basel Committee On Banking Supervision).
The European Parliament’s economic and monetary affairs committee has made a historic decision with its vote on policies for banks holding digital assets such as Bitcoin and Ethereum. This move is set to have a large-scale impact on the banking industry, as well as on crypto assets.
A spokesperson for the AFME, Caroline Liesegang, said the Parliament, Commission, and Council should provide a clear definition of what can be considered as crypto assets. According to an announcement by the European Parliament on Tuesday, the monetary affairs committee vote favored modifications of the capital requirements directive and the capital requirements regulation as it applies to banks with crypto holdings. The bill proposal states that banks with crypto holdings must hold up to 1,250 percent of the amount they hold in crypto assets.
This move is based on the recommendations of the BCBS, the Basel Committee on Banking Supervision. The BCBS recommended categorizing crypto assets based on consultation papers released in the last three years. It also advised banks on how to address possible risks.
The implications of this decision are wide-ranging. It is a major step forward in the acceptance of crypto assets as a legitimate form of financial asset. This move could also make banking safer and more secure, as banks will now be required to hold significant capital in order to cover any potential losses that may arise from holding crypto assets.
The European Parliament’s decision is also likely to have a positive effect on the crypto industry as a whole, as it could open up new opportunities for investors and traders. This could lead to an increase in the number of people investing in cryptocurrencies, which would in turn lead to increased liquidity and further legitimization of the industry.
Ultimately, the Parliament’s decision is a major milestone in the development of the crypto industry. It is a sign that the industry is being taken seriously and that it is becoming increasingly accepted by regulators and governments. This could lead to further development of the industry in the future, and could open up new possibilities for those involved.
