The European Parliament has released a report on a draft bill proposing that banks holding cryptocurrencies set aside a large amount of capital in an effort to address potential risk.
In a Feb. 9 notice, European Union lawmakers said any framework applied to crypto assets should “adequately mitigate the risks of these instruments for the institutions’ financial stability,” proposing banks apply a 1,250% risk weight on their exposure to digital assets — one of the highest risk ratings for investments. The proposed law suggested that such requirements go into effect until Dec. 30, 2024.