EU Regulator Requires Banks to Disclose Cryptocurrency Information
Date: 2023-10-17 Author: Dima Zakharov Categories: BUSINESS, IN WORLD
New Regulatory Requirements for EU Banks Regarding Cryptocurrencies
The European regulator has introduced new and stringent requirements for banks related to their activities in the field of cryptocurrencies. According to these requirements, banks will be obligated to disclose all information about their digital asset transactions, starting from January 2025. This decision is aimed at increasing transparency in the realm of cryptocurrency operations and safeguarding against associated risks.
The regulator also demands that financial institutions provide detailed reports on cryptocurrency-related risks, as well as capital and liquidity requirements. These new rules are intended to help banks become more transparent and uphold market discipline.
European Banks Show Interest in Cryptocurrencies
Against the backdrop of these new regulatory requirements, banks in Europe are displaying a growing interest in cryptocurrencies. Earlier this year, they expressed a desire to enter the digital asset market. However, at that time, they lacked the regulatory framework to do so. The Basel Committee on Banking Supervision actively encouraged regulators to expedite the creation of the necessary rules.
In April, it was announced that the European Parliament had approved a set of requirements for regulating the cryptocurrency market known as MiCA (Markets in Crypto-assets). These new rules are expected to be implemented next year.
Oversight of Stablecoin and Cryptocurrency Transaction Circulation
It's important to note that while these new rules do not directly regulate the relationships between banks and cryptocurrency markets, regulators will be able to monitor the circulation of stablecoins and cryptocurrency transactions. This will help prevent illicit operations and provide an additional level of protection for investors and the market as a whole.
Bank for International Settlements and Cryptocurrency Transaction Tracking System
Recently, the Bank for International Settlements announced the development of a proof of concept for a system to track transactions between cryptocurrency exchanges and public blockchains. This is a significant step toward regulating and controlling cryptocurrency operations, providing greater clarity and transparency in this field.
