EU lawmakers have reached an agreement on capital requirements for banks holding cryptocurrencies. This comes as part of a transitional regime until more extensive reforms are implemented. The regime aims to ensure that banks disclose their exposure to crypto-assets and will be in effect until the European Commission implements the Basel III banking reforms. MEP Jonás Fernandez stated that this transitional arrangement will involve setting capital requirements for crypto assets. The European Parliament Committee on Economic and Monetary Affairs announced the deal and stated that further details will follow. The deal also includes changes to how banks assess the risk of loans. It now needs to be voted on by member states in the EU’s Council and lawmakers to become legislation. Global standards for regulating bank exposure to crypto assets are being finalized at the Basel Committee on Banking Supervision. The Basel III agreement was created to enhance prudential regulatory standards, supervision, and risk management of banks in response to the Global Financial Crisis of 2007/2008.
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