According to a draft proposal published by the European Parliament on Friday, EU banks would be required to place the highest possible risk weight on crypto assets. The proposed rules may influence how the traditional financial sector interacts with digital assets. According to the agreement, as previously reported by CoinDesk, banks would be required to disclose their direct and indirect exposure to cryptocurrency while the European Commission develops more fine-grained regulations for the sector. The proposed risk weight of 1.250% provides little incentive for banks to hold crypto, as banks would have to hold capital to match the amount of crypto they have, unlike other assets such as mortgages. The draught law requests that the European Commission propose additional legislation by June.
