In the European Union, consensus has been reached on new bank capital legislation, following an effort by lawmakers to keep crypto away from traditional finance.
The development of the crypto market is tightening the moves of countries against this sector. The European Union has enacted crypto regulation in recent months. MiCA, accepted by 27 countries, is the first crypto regulation to receive legal status.
But lawmakers in the European Union are working hard to ban crypto’s contamination of traditional finance. In this context, an agreement was reached on a new legislation in the European Union.
European Union Can Protect Traditional Finance
Many lawmakers in the European Union (EU) were demanding prohibitive measures to prevent crypto from infecting traditional finance. Following the consultation of lawmakers on crypto and traditional finance, new bank capital legislation has been agreed upon. This agreement is scheduled to be presented to parliament and passed for approval.
This agreement was announced in a tweet from the Economic and Monetary Affairs committee of the European Parliament. The deal, which focuses on several controversial issues, including how banks assess the risks of corporate and home loans, will be presented to the European Council for enactment.
This compromise needs to be approved by the member states and their parliamentarians in the European Council. However, the process is expected to take months.
Also, international regulators at the Basel Committee on Banking Supervision are working on a cryptobanking rulebook that will apply globally.
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