EU Capital Requirements Banks Holding Crypto — Bitcoin Magazine

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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 People’s 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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