The European banking sector could register new laws in the coming days. EU policy makers who have never hidden their desire to regulate this sector and particularly banks’ access to cryptos are taking a giant step and could see their dream come true soon. The governments of the European Union would now all be in favor of strict restrictions on bank capital. A decision that could directly affect two flagship cryptocurrencies.
New rules to regulate the crypto activity of banks
The distrust of crypto displayed by European legislators last year prompted them to adopt new laws to better regulate the crypto industry and all the actors or establishments involved in it. Among these is the MiCA law: a regulation that will be officially applicable in a few days and whose standards govern the operation of crypto firms.
European Union governments are also taking an interest in the adoption of cryptocurrencies by banks and are announcing the imminence of new banking laws after several months of talks.
At a meeting in Spain to discuss the new rules, Mats Anderson, adviser for financial services and markets at Sweden’s European representation, said that “the commission’s document is a good basis for moving Before “. The Swedish diplomat ensures that the 26 other members are unanimous on this subject.
Martin Merlin, director of financial markets at the European Commission, says, in turn, that with the progress of the talks, an “agreement by the end of June is possible”. The adoption of the new banking laws is therefore closer than ever. However, what are the implications for cryptocurrencies, which are also at the heart of the discussions?
Soon the maximum risk weighting for bitcoin (BTC) and ether (ETH)?
With the new bank capital standards being considered by EU governments, bitcoin (BTC) and ether (ETH) could receive the maximum risk weight which is 1250%. Banks wishing to gain exposure to cryptocurrencies will therefore have to meet very high capital requirements.
The idea of applying the maximum risk weighting to these digital assets had already emerged last January and was a proposal from the European Parliament. However, the European Commission proposed to relax these measures with lower risk weights for stablecoins that are regulated by the MiCA law.
European institutions are therefore affirming their desire to regulate the relationship of the banking sector with the crypto industry. The European Parliament has announced its plan to impose new restrictions on crypto payments last March.
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