Lawmakers in the European Union have voted to impose strict capital requirements on banks holding cryptocurrencies, according to a report. Reuters Article.
In an effort to “prevent instability in the world of cryptocurrencies from spreading to the financial system,” Markus Ferber, economic spokesman for the European People’s Party in the EU parliament, says that “banks will need to have one euro of equity capital per each euro”. they are held in crypto.”
Lawmakers cite the market chaos seen in recent months as further evidence that such regulation is necessary. With events like the FTX crash, Celsius and others fresh on users’ minds, the passage of this law is expected to be part of a broader set of regulations aimed at bringing the EU in line with international standards.
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