The last piece of post-financial global bank capital rules, which added ‘prohibitive’ requirements to cover risks from cryptoassets, was adopted by European Union legislators on Tuesday.
The Economic Affairs Committee of the European Parliament approved a draught law to implement Basel III capital regulations beginning in January 2025, while also supporting a number of temporary divergences to give banks more time to adapt.
Similar actions are being taken in the US, UK, and other nations, but the committee used the draught law to add new provisions, such as the requirement that banks maintain sufficient capital to fully cover their holdings of cryptoassets.
Markus Ferber, a member of the committee from the center-right of Germany, stated that banks ‘will be required to hold a euro of their own capital for every euro they hold in cryptocurrency.’
The action, which is a stopgap measure pending additional EU legislation, is in line with suggestions made by international banking regulators.
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