Proposed Amendments to EU Financial Services Law May Limit Cryptocurrency Holdings by EU Banks

According to CoinDesk, proposed amendments to the European Union's financial services law have revealed that EU banks exposed to cryptocurrencies such as bitcoin, which are considered too volatile or volatile, will face holding caps and high capital requirements. Assets that are excessively risky, collectively referred to as Category 2 assets, receive the most cautious rating. Class 1 cryptoassets, which include stablecoins and securities using distributed ledger technology, are considered to be less risky than Class 2, will receive more flexible capital requirements and have no cap.