European lawmakers have backed a proposal to introduce more stringent rules for banks that have crypto assets such as Bitcoin and other digital assets. The Financial Stability Board (FSB) has proposed that banks should hold more capital to cover the risks associated with these assets. The proposal was welcomed by the European Commission, the EU’s executive branch, as a step in the right direction to ensure better regulation of the crypto industry. The FSB, which is based in Basel, Switzerland, is an international body of central banks and regulators. It said that banks should take into account market volatility, liquidity risk and legal uncertainty when assessing their capital requirements. The proposal is expected to be implemented in the coming years.
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