The finalized EBA rules mandate significantly higher capital requirements for EU banks holding unbacked cryptocurrencies, aiming for harmonized risk assessment and stringent segregation of crypto exposures.
The European Banking Authority (EBA) finalized rules under the Capital Requirements Regulation (CRR III), requiring banks to hold substantially more capital against crypto assets. Unbacked digital assets such as Bitcoin and Ether are assigned a 1250% risk weight, while asset-referenced tokens face a 250% risk weight. The finalized framework includes detailed methodologies for credit, market, and counterparty risk modeling, and enforces strict segregation between assets. The draft now moves to the European Commission for a review period of up to three months before potential endorsement. For example, Italian bank Intesa Sanpaolo would need to hold 12.5 million euros in capital against a 1 million-euro Bitcoin purchase, illustrating the significant regulatory impact. Meanwhile, divergent global regulatory trends, including relaxed US FDIC guidelines and Swiss DLT Act amendments, underscore contrasting approaches to crypto oversight.