• The European Parliament’s Economic and Monetary Affairs Committee voted to impose strict restrictions on banks seeking to hold crypto.
• Luzius Meisser, Chair of Switzerland’s largest crypto broker Bitcoin Suisse, suggested that the EU may try to build a firewall around crypto rather than prohibiting its use altogether.
• This containment strategy could be beneficial to both the traditional finance market and the crypto industry in Europe.
EU Crypto Containment Strategy
The European Parliament recently voted to impose strict restrictions on banks wanting to hold cryptocurrency. Luzius Meisser, Chairman of Swiss crypto firm Bitcoin Suisse suggested that the EU may opt for a containment strategy rather than banning cryptocurrencies altogether.
Benefits of EU Containment Strategy
Meisser argued that the containment strategy proposed by the EU will have benefits for both cryptocurrency and the traditional finance market in Europe. He said that this approach will protect both industries from each other’s faults and mistakes.
Crypto Banking Rules Proposed by Basel Committee
The restrictions imposed by the EU reflect closely those set by Basel Committee on Banking Supervision (BCBS), which is an international standard setter for banking regulations. The BCBS has proposed rules that require firms to hold 1 euro in their own capital for every euro held in cryptocurrency assets they trade with customers or clients.
Potential Impact of Crypto Regulations Across Europe
It remains unclear how these new regulations would be enforced across all member states within the European Union, as each nation may interpret them differently depending on their own laws and regulations regarding financial services and digital assets.
Ultimately, it appears that while there is potential for stricter regulations on cryptocurrencies within Europe, it is unlikely that outright bans will be imposed any time soon. Instead, building a firewall between cryptos and traditional finance seems like a more viable option at this stage of development for digital assets within Europe.