Render European banks more resilient to crises and less permeable to unsecured cryptocurrencies, such was the objective of the legislators of the 27 gathered today. A agreement favorable to the reforms of banking rules was found at the same time.
Europe Accelerates in Crypto Regulation
We will have to wait until 2024 for the MiCA regulation becomes effective. At the moment, we are only at the stages of adoption and promulgation. Nevertheless, these few weeks of birth have seen the proposal of a MiCA 2.0, more suitable for conglomerates.
” This Tuesday 27/06 EP Economics negotiators reached agreement on changes to the CRR & CRD Capital Requirements Regulation and Directive @jonasfernandez with #EU2023SE details to follow. »
THE Press release published by the European Parliament mentioned an agreement finalizing the ” banking rule reforms “. Concocted by negotiators from the EU Parliament, Council and Commission, it aims amendments to the capital adequacy regulation (CRR) and the capital adequacy directive (CRD).
” The negotiators aimed to implement the Basel III standards as closely as possible to European legislation. At the same time, the texts adopted take into account the concrete conditions of the EU banking sector by introducing certain European specificities, if possible on a transitional basis..
According to CoinDesk, these revisions also affect crypto-assets. Legislators have indeed called for the establishment of “prohibitive” rules. They aim to block the integration of unsecured cryptocurrencies into the mainstream financial system.
Adopt a ” hard line »
The objective of strengthening the strength and resilience of EU banks will only be achieved byrisk weight adjustment for bank assets (such as cryptos and business loans), underlines Elisabeth Svantesson, Swedish Minister of Finance.
In a recent negotiation of the actors, one spoke about a position rather hard “. She demands a maximum possible risk weight of 1,250% to volatile cryptocurrencies.
In other words, banks will be required to issue one euro of capital for each euro of bitcoin or ether held. In the event of adoption of this regulation, these institutions will no longer have an incentive to purchase BTC or ETH.
And in the end, Europe will be hollowed out of any form of crypto-assets devoid of stability. Only stablecoins will take pride of place alongside thedigital euro so cherished by the ECB. But these currencies will have to pass stress testing taking into account the security measures of the Basel Committee.
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