© Reuters
Investing.com – The European Parliament’s Economic and Monetary Affairs Committee will meet later this week to vote on outstanding elements of the Basel III deal.
These include the capital requirements that banks that have exposure to cryptocurrencies must meet. The Basel Committee recommends imposing a capital requirement of 1250 percent on crypto-assets. This threshold is intended to prevent financial institutions from over-engaging in the cryptocurrency market and finding themselves in trouble in the event of a digital asset market crash. This would also automatically stem the growing systemic risk that accompanies the growth of the cryptocurrency market.
This legislative procedure is independent of the ongoing EU regulatory approach, Markets in Crypto Assets (MiCA), whose vote was recently postponed due to translation delays of the 400-page document.
By Marco Oehrl