EU calls for fast-track procedures for cryptocurrency capital rules

The European Commission is asking European Union banks to fast-track approval of strict rules for cryptocurrencies.

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The Basel Committee on Banking has set a cap of 2025 to regulate the capital requirements that banks with exposure to cryptocurrencies such as bitcoin and stablecoins need to have.

A statement from the Commission noted that “currently, banks have little exposure to cryptocurrencies and little provision of cryptocurrency-related services. They have expressed interest in crypto transactions on behalf of customers, as well as in providing related transactions.”

The Basel standards are implemented by law in the EU and a delay would mean banks would have to wait longer to enter the cryptocurrency market, based on separate EU legislation that will come into force in 2024.

To get into the Basel rules for cryptos, the EU could either propose new legislation or extend the banking law being finalized by the European Parliament, Reuters reported.

According to the publication, the European Parliament and EU member states have an equal say in the banking law and are expected to start negotiations on the final text in which provisions for cryptocurrencies could be included, the Commission’s paper said.

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