Catenaa, Wednesday, August 5, 2025- The European Banking Authority (EBA) has issued draft rules detailing how banks must manage crypto-asset exposures, aligning with the EU’s push to integrate digital assets into its regulatory framework.
The proposed Regulatory Technical Standards comes under the Capital Requirements Regulation.
It outline how institutions should calculate and report risks for unbacked crypto like Bitcoin, asset-referenced tokens tied to commodities or fiat, and tokens linked to other crypto assets.
The standards cover credit, market, counterparty, and valuation risks, requiring banks to aggregate long and short positions and apply strict modeling and hedging criteria.
The EBA’s approach aligns with the Basel Committee’s global guidance and the EU’s Markets in Crypto-Assets (MiCA) regime.
A key adjustment from earlier consultations was dropping the “prudent valuation” rule for fair-valued crypto exposures, easing compliance for banks while maintaining rigorous capital requirements.
Labeled a transitional framework under CRR 3, the rules allow banks to engage in custody, trading, and issuance of crypto assets while preparing for a permanent regulatory regime.
Institutions must now recalibrate internal capital models, update reporting systems, and ensure hedging strategies meet new thresholds, or face higher capital charges and regulatory scrutiny.
The move comes as European banks expand crypto offerings to meet rising client demand, with the EBA signaling that risk clarity is critical for broader adoption.
