EU reaches political agreement on crypto capital rules

The European Union has reached a “political agreement” on new capital adequacy rules for banks’ digital assets, according to Finextra. The news was announced by the European Parliament’s Economic and Monetary Affairs committee. It said that negotiators from the parliament, national governments and the European Commission (EC) had “struck a deal” on changes to Capital Requirements Regulation & Directive.

The negotiations, chaired by Swedish finance minister Elisabeth Svantesson, centred on concerns about unbacked crypto assets entering the financial system and the need for more stringent capital adequacy rules.

The agreement, which also takes into account changes to banks corporate and home loans risk assessments, includes the inclusion of a “transitional prudential regime for crypto assets”, however there are few details on exactly how this regime will operate.