The European Parliament announced that the Commission voted overwhelmingly in favor of amending its capital requirements regulations and capital requirements directives applicable to banks holding cryptocurrencies.
According to a draft law, banks will be required to hold a risk-weighted exposure amount of up to 1,250% of their capital based on their exposure to cryptocurrencies.
The lawmaker said the changes were in line with changes at the Basel Committee on Banking Supervision (BCBS), which is responsible for international banking standards.
The group has published consultation papers in 2019, 2021 and 2022, exploring grouping crypto assets and recommending how banks should respond to potential risks. BCBS reports that banks have more than $9 billion in exposure to crypto assets by 2021.