EU lawmakers passed a law on January 24 that requires banks that have invested in cryptocurrencies to hold euros equivalent to their cryptocurrency investments as capital, Reuters reported.
This requirement will come into force in January 2025 and will give banks ample time to adjust their finances. ReutersThe bill was approved with the aim of eliminating instability within the crypto realm.
EU Member of Parliament Markus Ferber said:
“Banks must hold €1 of equity capital for every € held in cryptocurrencies. It helps.”
According to the Association of European Financial Markets (AFME), the new bill lacks a clear definition of what crypto assets are. Therefore, it can also be applied to tokenized securities.
Now that all EU member states have approved the bill, parliamentarians will begin negotiations with member states on the final text and finalize the official script.
