The European Union is working overtime to introduce new crypto banking regulations detailing requirements for banks that hold crypto assets.
According to a report by Reuters, the global Basel Committee of banking regulators has set a January 2025 deadline for implementing new capital requirements for banks that have exposure to crypto assets like stablecoins and bitcoin (BTC).
The European Commission said in an informal discussion paper seen by Reuters that banks have little exposure to cryptocurrencies but have expressed interest in providing crypto-related services.
"For the time being, banks have very low crypto-asset exposures and only limited involvement in providing crypto-asset-related services. [However], banks have expressed interest in trading crypto-assets on behalf of their clients and to provide crypto-assets-related services."
If the EU fails to adopt the new Basel crypto banking rules, banks will need to wait longer to enter the crypto markets. The landmark EU crypto framework Markets in Crypto Assets (MiCA), a separate piece of legislation on trading crypto, is set to come into force sometime in 2024.
The EU could propose a new law or expand the banking law to enforce the new Basel rules. The law is currently being finalized.
Everyone will win if the EU agrees on specific and favorable user banking regulations. However, it’s not a given, so those interested in the topic should consider it following more closely to better prepare for the upcoming changes.
#Intends #Implement #Crypto #Capital #Banking #Regulations