EU Capital Requirements Banks Holding Crypto – Bitcoin Magazine

European Union lawmakers have voted to impose strict capital requirements on banks that hold cryptocurrencies, per a Reuters article.

In an effort to “prevent instability in the crypto world from spilling over into the financial system,” Markus Ferber, economic spokesperson for the EU parliament’s European People’s Party, says, “banks will be required to hold a euro of own capital for every euro they hold in crypto.”

Lawmakers cite the chaos in the markets seen over the last few months as further evidence that such regulation is necessary. With events like the collapse of FTX, Celsius and others fresh in the minds of users, the passing of this law is anticipated to be part of a larger set of regulations aimed at bringing the EU into line with international norms.