ECB will try to regulate crypto assets

The European Central Bank (ECB) said on Wednesday it would harmonize how banks offer crypto assets to ensure they have enough capital and expertise in a sector some European Union lawmakers have described as the Wild West.

Several crypto companies such as Binance and Crypto.com have been authorized in EU countries such as Italy, France, Spain, Greece or Germany after complying with national safeguards to combat money laundering and terrorist financing. But EU-wide licensing rules will be in place from 2023 at the earliest. 

The ECB will examine if crypto activities are in line with a bank’s risk “profile,” which determines how much capital to hold. The ECB will also check if a bank can identify and assess risks from crypto assets and if board members and IT staff have “robust experience” in the sector. 

[Reuters]