The head of the European Central Bank, Christine Lagarde, periodically declares the need to regulate the cryptocurrency market.
She stressed that many EU residents lost their investments after the recent market crash. To protect investors, it is necessary to develop a regulatory framework that will increase the transparency of transactions with digital assets.
The press service of the ECB urged banks working with cryptocurrencies to adhere to the standards developed by the Basel Committee on Banking Supervision. Their implementation in the euro area will be completed by January 1, 2025.
However, the regulator calls on credit institutions to adhere to such standards now.
The ECB stressed that digital currencies are risky assets.
In the Eurozone, only a few banks invest in cryptocurrencies so far. However, their number will grow.
Therefore, supervisors should monitor the financial condition of each bank that is involved in transactions with digital assets.
Banks cannot invest more than 1% of their capital in bitcoin. According to the ECB, such a restrictive measure minimizes the risks of loss of liquidity.
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