EU approves ‘prohibitive’ capital rules for banks’ crypto holdings
Draft law implements final parts of Basel III, planned for January 2025
The European Parliament’s economic affairs committee approved a draft law on January 24 to implement the remaining elements of the Basel III capital rules, including “prohibitive” capital requirements to cover risks from crypto asset holdings in full.
According to a leaked document seen by Reuters, banks would have to apply a risk weighting of 1,250% of capital to crypto assets, in line with recommendations from the Basel Committee on Banking Supervision.
The Basel III global accord requires
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