The European Banking Authority (EBA) has finalized rules forcing banks to hold much more capital against so-called “unmeal” cryptocurrencies such as bitcoin and ether.
In its final project, regulatory technical standards published on Tuesday, the ABE said that the rules aimed to “fight against the implementation aspects and guarantee the harmonization of capital requirements on exhibitions to crypto failure by EU institutions”. The framework applies to banks based on the European Union with cryptographic assets on their balance sheets.
According to the documentation which accompanies it, the digital assets of group 2 (A and B) are subject to a risk weight “1,250% general. The 2B group refers to the “other” cryptographic active ingredients, including those not supported as Bitcoin (BTC). Group 2A refers to a subcategory of the same assets which meet the criteria of coverage and net of international colonies.
Group 1 B refers to tokens called assets linked to traditional financial instruments. This group is subject to a risk weight of 250%.
These risky weights were introduced as part of the capital requirements (CRR III) and entered into force in July 2024.
The latest EBA project adds the technical elements necessary to calculate and aggregate exposure to cryptography, such as credit risk modeling, market risks and at risk of counterpart. It also introduces strict separation between assets, which means that bitcoin and ether (ETH) cannot be compensated against each other.
Once the final project is passed to the European Commission, Brussels will have up to three months to decide to approve it in such a one or with amendments, or to return it for replay. After approval, the bill would become a delegated regulation and would be sent to the European Parliament and to the Council, with a three -month objection window expandable to six.
If neither the European Parliament nor the Council is opposed, the project will come into force within 20 days of its publication in the Official Journal of the EU.
In relation: US Bank Lobby defies the offers of cryptographic companies for banking licenses
EBA finalizes strict cryptography rules
The rules should directly affect European banks which already hold cryptography on their balance sheets. The Italian Bank Intersa Sanpaolo, which bought 1 million euros in Bitcoin in January, should hold 12.5 million euros in capital against this position in the new framework.
It is unlikely that Fintech Revolut company will be affected by change. Bank crypto services are off balance sheet and managed by its non -banking arm, Revolut Digital Assets Europe Ltd.
In relation: The best German banks managing $ 4.5 billion and more assets are crypto – here is what to look at
Europe is swimming against the tide
The position of the EBA contrasts strongly with the broader management of world regulators to adopt crypto in existing financial frameworks.
At the end of March, the Federal Deposit Insurance Corporation (FDIC) declared in a letter that institutions under its supervision, including banks, can now engage in activities related to crypto without prior approval.
In April, Switzerland adopted modifications to its DLT law allowing banks to hold token securities and to offer guarantees for stabbing issuers in a clear legal framework.
Recent reports also suggest that US President Donald Trump plans to sign an executive decree ordering banking regulators to investigate debanrage allegations made by the cryptocurrency sector and the Conservatives.
The American banking sector already has a remark, Jpmorgan Chase would have explored the loans supported by Crypto, signaling a potential change in the way American banks see cryptographic assets.
The new EU capital rules could limit the participation of banks in the growing digital asset market, especially since decentralized finances and tokenization continue to develop in traditional financial services.
Review: The crypto wanted to reverse the banks, now it becomes in the fight of Stablecoin
