European Union lawmakers have given initial approval for changes to regulations related to the crypto industry. Part of these strict rules are focused on banks that operate in the field of cryptocurrencies and digital assets.
According to the publication Bitcoinist, new European rules are trying to limit the number of unbacked Bitcoin and Ether loans. Under these rules, banks must hold more cash capital to protect customers against crypto-related losses. Also, banks are required to declare the amount of cryptocurrency assets to regulatory bodies.
The new laws must be approved by the European Parliament and the EU Finance Ministers before entering into the implementation phase. The European Union plans to limit the amount of cryptocurrency assets of banks in a new framework. If approved, these laws will be implemented at the beginning of 2025.