Banks in Europe will be required to disclose if they have exposure to crypto if a new law gets passed.
The European Parliament's Economics and Monetary Affairs Committee passed new requirements requiring banks to hold more capital against potential crypto losses, which will take effect once approved by the European Parliament.
More:
- The committee approved new rules for banks exposed to crypto companies.
- Banks will need to apply a risk-weighting of 1,250% on unbacked crypto.
- Stablecoins should be subject to the same risk weights as reference assets.
- The Association for Financial Markets in Europe (AFME) believes that the parliament's decision is a positive step for the implementation of "international Basel III reforms."
