EU Reaches Landmark Agreement on Crypto Asset Regulations and Bank Capital Rules

The European Union has reached a political agreement on new regulations for crypto assets as part of changes to the Capital Requirements Regulation and Directive. The rules aim to prevent unbacked cryptocurrencies from infiltrating the traditional financial system and boost the strength and resilience of banks operating in the EU. The agreement includes a transitional prudential regime for crypto assets, with details yet to be disclosed. The final text will be issued alongside new banking rules by the Basel Committee on Banking Supervision, with implementation expected by January 2025.