Swedish Finance Minister Elisabeth Svantesson stressed on behalf of all her EU colleagues that the new rules aim to increase the reliability and soundness of local banks. The ECON proposal calls for a maximum potential risk weight of 1250% for crypto-assets with free-floating exchange rates.. In fact, it would require banks to maintain one euro of capital for every euro of bitcoin or ether value they own. In addition to the rules specifically for cryptocurrencies, there will be an assessment of the financial implications of digital assets and a recalibration of risks for other bank assets, such as corporate loans.
“The final text of the amendments will be available after approval by EU member state legislators. Transitional provisions will remain in effect until January 2025, when the international rules of Basel-III should come into force. The goal is to address the potential risks to financial institutions caused by exposure to crypto-assets that are not sufficiently covered by the existing prudential system,” explained the MEP’s Council representative.
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While the statement confirmed the inclusion of a “transitional prudential regime for crypto-assets in banking,” the Council refrained from providing further details on the issue.
Recently, the EU’s joint EBSI VECTOR project team and blockchain solutions provider Protokol announced
to collaborate on a decentralized framework for cross-border verification of citizens’ documents.