EU secures an agreement on the crypto asset rules in banking
European lawmakers have recently given their approval to a set of temporary regulations aimed at safeguarding the traditional financial system against the potential risks posed by “unbacked” cryptocurrencies. These rules also aim to minimise the risks faced by banks that hold digital assets.
Under these rules, banks will now be obligated to disclose details regarding their operations with crypto assets. More details on these new measures will be provided by the lawmakers in due course.
Swedish Finance Minister Elisabeth Svantesson, speaking on behalf of her EU colleagues, stated that the new measures are intended to enhance the stability and reliability of banks operating on the territory of the EU. Additionally, an assessment will be conducted to evaluate the impact of cryptocurrencies on the financial sector, along with a risk check for other banking assets.
These rules were initially proposed in 2021 and now require approval from the member states of the EU Council and legislators. This process may take several months. The new rules will remain in effect until specific regulations aligned with the standards of the Basel Committee on Banking Supervision are implemented.
The representatives of the European Parliament explained that the objective is to eliminate potential risks for institutions engaging with crypto assets, as the existing protection system may not provide sufficient security.
However, regulators remain deeply concerned about the high volatility of crypto assets and are actively seeking ways to manage it.
Previously, the EU Council and the European Parliament adopted new rules for regulating digital asset markets through the Markets in Crypto-Assets (MiCA) regime. As a result, the European Union has become the first jurisdiction globally to implement comprehensive measures to regulate crypto assets and protect users.