ECB said banks are also considering whether to join the crypto sector
ECB said banks are also considering whether to join the crypto sector
The European Central Bank (ECB) said on Wednesday it will harmonize how banks offer cryptocurrency to ensure they have sufficient capital and expertise in an area that some EU lawmakers have dubbed the Wild West. described in.
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After adhering to national security measures to combat money laundering and terrorist financing, many crypto companies such as Binance and Crypto.com have been authorized in EU countries such as Italy, France, Spain, Greece or Germany.
it comes next Pan-EU licensing rules from 2023 as soon as possible.
The ECB said that banks are also considering whether to join the crypto sector, but the national regulations have changed significantly.
“In Germany, certain crypto activities are subject to a banking license requirement and, to date, several banks have requested to be authorized to conduct these licensed activities,” the ECB said in a statement.
“It is in this context that the ECB is taking steps to harmonize the evaluation of licensing requests.”
The ECB, which directly controls top euro area lenders such as Deutsche Bank, Unicredit and BNP Paribas, said it would investigate whether crypto activities were in line with the bank’s risk “profile”, which determines how much capital it holds. Have to do
The ECB will also examine whether a bank can identify and assess risks from cryptocurrencies and whether board members and IT staff have “strong experience” in this area.
“Importantly, working closely with national observers, the ECB will strive towards greater consistency in prudential assessments across national regimes,” the ECB said.
Global regulators from the Basel Committee in Switzerland are assessing whether banks should have specific capital buffers to hold crypto assets.
The European Union is also reviewing its bank capital requirement law.
Ville Niinisto, a member of the European Parliament’s Green Party, has proposed an amendment that bank holdings of bitcoin and other cryptocurrencies that are not backed by assets should not exceed 1% of a bank’s core Tier 1 capital.
Such a limitation would require a full parliament and the support of EU states for it to become law, a lengthy process.
Mr Ninisto also proposed that regulators should assess whether there are bespoke capital requirements for blockchain, which underpins crypto.