EU watchdog to set punitive capital rules for insurers holding crypto
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EU watchdog to set punitive capital rules for insurers holding crypto
Publish date
Mar 28, 2025 - 12:00am
Referenced by
EIOPA submits crypto capital rules to EU Commission
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Global regulators have opted for a more nuanced approach for bank capital requirements on crypto. The Basel Committee on Banking Supervision proposed splitting crypto assets into two groups. The first includes stablecoins and other tokenised assets that will have the capital requirements of their underlying currency or security; the second group of riskier assets require banks to back them with 100 per cent of capital.
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However, the proposals are unlikely to have much impact soon given the relatively small amount of crypto held by European insurers. EU insurers held €655mn of crypto assets at the end of 2023, according to Eiopa, which is less than 0.01 per cent of their €9.6tn of overall assets. About two-thirds of their crypto holdings were in Luxembourg, indicating they are mostly held indirectly via funds.
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