Crypto News: Multiple blows received in 2022 have left the global digital asset market seeking regulatory guidance from all governments and authorities. In this pursuit to provide clarity around the crypto market, the European Parliament’s economic affairs committee will hold a vote on Tuesday.
Will Basel III measures be implemented?
As per reports, the European Union is due to vote on cross party compromises. It is a draft law that will help the authorities to implement the remaining elements of Basel III. (Basel III is a set of measures that are internationally agreed upon by leaders. The Basel Committee developed these measures in response to the financial crisis of 2007-09).
This suggests that the banks would have to keep apart punitive amounts of capital used to cover holdings of digital asset. One of the amendments of the drafted law states that financial institutions would have to apply a risk weighting of 1,250% of capital to crypto exposures. This move will help them to cover a loss ahead. Read More Crypto News Here…..
Basel Committee of banking regulators dropped recommendations for the global financial institution back in December. However, If the EU goes in favor of the draft law, then the amendments will also introduce a glimpse of Shadow Banking.
The post EU To Make Decision Over Strict Crypto Rules; Will Market React To This? appeared first on CoinGape.
