Parliamentarians in the European Union supported a draft bill to implement the latest phase of post-financial global banking capital requirements, incorporating so-called "prohibitive" measures to cover the risks of cryptoassets on Tuesday.
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The European Affairs Committee approved a measure to introduce Basel III capital controls. Basel III is a set of guidelines issued by the Basel Committee on Banking Supervision in 2010-2011, although there are still various temporary disagreements.
The United States, the United Kingdom, and other countries are all adopting similar measures, but the committee has included new elements into the draft bill, such as the requirement for banks to have enough capital to cover their entire cryptocurrency holdings.
This step is a temporary step towards the adoption of new EU legislation, which is in line with global banking regulators' recommendations.
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The AFME's Association for Financial Markets in Europe claims that the draft bill does not define crypto assets but may eventually extend to tokenized securities.
Countries in the EU have already approved their versions of the proposed legislation, and legislators will now discuss the final text with them as changes.
Foreign banks operating through branches in the EU will be keeping an eye on the discussion. Member countries have taken a more moderate stance on when foreign banks serving customers in the EU may open a branch or convert a branch into a larger capitalized subsidiary, but EU legislators took a more firm stance on Tuesday.
Since after Brexit (exit of the United Kingdom from the European Union), the EU seeks to enact a "strategic autonomy" in capital markets.