EU calls for rapid cryptocurrency capital rules for banks

It is reported that the EU administrative department said that if Europe wants to avoid missing the globally agreed deadline, it must rapidly implement the capital rules for banks holding encrypted assets in the EU’s pending banking law. It is reported that the Global Basel Committee, composed of banking regulators in the world’s major financial centers, has set a deadline of January 2025 for the implementation of the bank’s capital requirements for crypto assets such as stable currency and bitcoin. The standards of the Basel Accord are legally applicable in the EU, and the delay may mean that banks have to wait longer to enter the crypto market, because the EU’s separate rules on crypto asset transactions will come into force in 2024. In order to implement the Basel cryptocurrency rules, the EU can propose a new law, or expand the banking law it is currently finalizing according to the requirements of the European Parliament.

Interpretation of this information:

The EU administrative department has stated that they need to implement capital rules for banks holding encrypted assets in order to meet the globally agreed deadline of January 2025 set by the Global Basel Committee. This deadline applies to the implementation of bank’s capital requirements for crypto assets like stable currency and bitcoin. The delay in implementing these rules may mean that banks have to wait longer to enter the crypto market due to separate rules on crypto asset transactions that will come into force in the EU in 2024. The EU can propose a new law or expand the banking law it is currently finalizing to implement the Basel cryptocurrency rules.

The first keyword is “capital rules.” The EU administrative department has stated that capital rules need to be implemented for banks holding encrypted assets in order to meet the globally agreed deadline set by the Global Basel Committee. These rules will apply to crypto assets like stable currency and bitcoin.

The second keyword is “deadline.” The Global Basel Committee has set a deadline of January 2025 for the implementation of bank’s capital requirements for crypto assets such as stable currency and bitcoin. The EU needs to rapidly implement the capital rules to avoid missing this deadline.

The third keyword is “crypto market.” The delay in implementing the Basel cryptocurrency rules may mean that banks have to wait longer to enter the crypto market. The EU’s separate rules on crypto asset transactions will come into force in 2024, and without the necessary capital rules, banks may face difficulties entering this market.