• bitcoinBitcoin(BTC)$23,352.00-0.03%
    BITCOIN
    24H : -0.03%
    Volume : $21,459,220,740.00
    Marketcap : $450,211,157,075.00
  • ethereumEthereum(ETH)$1,661.810.440%
    ETHEREUM
    24H : 0.440%
    Volume : $6,927,865,692.00
    Marketcap : $200,293,678,134.00
  • tetherTether(USDT)$1.000-0.06%
    TETHER
    24H : -0.06%
    Volume : $30,404,559,450.00
    Marketcap : $68,102,099,592.00
  • binancecoinBNB(BNB)$329.790.070%
    BNB
    24H : 0.070%
    Volume : $571,667,830.00
    Marketcap : $44,471,216,157.00
  • usd-coinUSD Coin(USDC)$1.000.050%
    USD COIN
    24H : 0.050%
    Volume : $2,860,057,730.00
    Marketcap : $41,976,217,297.00
  • rippleXRP(XRP)$0.4100.130%
    XRP
    24H : 0.130%
    Volume : $618,287,178.00
    Marketcap : $20,805,537,555.00
  • binance-usdBinance USD(BUSD)$1.000-0.01%
    BINANCE USD
    24H : -0.01%
    Volume : $7,140,137,001.00
    Marketcap : $16,275,391,420.00
  • cardanoCardano(ADA)$0.397-0.84%
    CARDANO
    24H : -0.84%
    Volume : $268,994,246.00
    Marketcap : $13,925,438,228.00
  • dogecoinDogecoin(DOGE)$0.0950.590%
    DOGECOIN
    24H : 0.590%
    Volume : $1,401,045,571.00
    Marketcap : $13,098,164,846.00
  • matic-networkPolygon(MATIC)$1.251.67%
    POLYGON
    24H : 1.67%
    Volume : $558,558,870.00
    Marketcap : $11,242,854,475.00
  • News
    • Latest News
    • Press Releases
  • Markets
  • Articles
    • Opinion
    • Explainers
    • Guest Posts
    • Sponsored Posts
  • Policy
  • Videos
  • Podcasts
  • Learn
    • DeFi Basics
    • Blockchain Fundamentals
    • Tutorials
    • Reviews
  • Research
    • Case Studies
  • Explore
    • NFTs
    • DAOs
    • Crypto Gaming
    • Metaverses
    • Web3
    • Stablecoins
    • CBDCs
    • DeFi
  • Markets Pro
    • DeFi Planet Pro
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
  • News
    • Latest News
    • Press Releases
  • Markets
  • Articles
    • Opinion
    • Explainers
    • Guest Posts
    • Sponsored Posts
  • Policy
  • Videos
  • Podcasts
  • Learn
    • DeFi Basics
    • Blockchain Fundamentals
    • Tutorials
    • Reviews
  • Research
    • Case Studies
  • Explore
    • NFTs
    • DAOs
    • Crypto Gaming
    • Metaverses
    • Web3
    • Stablecoins
    • CBDCs
    • DeFi
  • Markets Pro
    • DeFi Planet Pro
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result
Home News Latest News

EU Legislators to Vote on Strict Crypto and ESG Regulations for Finance Firms

23 January 2023
in Latest News, News
Reading Time: 3 mins read
102 5
EU Legislators to Vote on Strict Crypto and ESG Regulations for Finance Firms

image source: ledgernomic.com

The European Parliament’s Economic Affairs Committee is set to vote on a cross-party compromise concerning the implementation of the remaining elements of Basel III, a worldwide agreement that requires banks to hold additional capital to withstand market fluctuations without relying on taxpayer support. 

According to a report, the proposed draft law has the potential to significantly impact the banking industry. One of the key amendments proposed is the requirement for banks to apply a risk-weighting of 1,250% of capital to their crypto asset exposures. This means that banks would need to hold enough capital to cover a complete loss in the value of their crypto assets.

This is a significant development as it highlights the growing importance of crypto assets and the need for banks to have sufficient safeguards in place to protect against potential losses. The proposed amendments align with recommendations from the global Basel Committee of banking regulators.

The Basel Committee is an international body that brings together banking supervisors from around the world to strengthen banks’ regulation, supervision, and practices. The Committee’s recommendations, made in December, were aimed at strengthening the banking sector’s resilience and ensuring that it is better able to withstand future financial crises.

The proposed amendments also define “shadow banking,” a term that refers to the vast sector of financial institutions, such as insurers, hedge funds, and investment funds, comprising about half of the world’s financial system. 

These institutions are typically less regulated than banks and have been a growing concern among regulators as they can pose significant risks to the financial system’s stability.

The introduction of a definition of shadow banking in the draft law is a clear indication of the increasing recognition of the potential risks associated with these institutions and the need for adequate risk management measures. 

The amendment mandates that the European Commission, which is in charge of implementing EU law, publish a report by June 2023 that examines the viability of imposing prudential limits on banks’ exposure to shadow banks.

The proposed regulations amendments are far-reaching compared to the modifications that were agreed upon by the EU member states in December. These changes, primarily aimed at providing banks with a reprieve from certain compliance requirements, were met with resistance from the European Central Bank.

However, the new amendments go beyond these initial adjustments, making significant strides toward addressing the concerns and challenges facing the banking industry. 

While the EU member states’ deal was primarily focused on providing temporary relief, these new amendments aim to provide a more comprehensive and long-term solution.

This is essential for ensuring that banks can adapt and evolve in an ever-changing and complex regulatory landscape. The amendments also call for bank remuneration policies to align with their transition plans to address environmental, social, and governance (ESG) risks over the short, medium, and long term.

 

If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram.

“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Share62Tweet39Share11
Previous Post

Aptos Token (APT) Sees Rapid Price Growth of 100% in Two Weeks As NFT Demand Soars

Next Post

South African Regulatory Authority Implements Risk Disclosures in Cryptocurrency Advertising

Endurance Okpanachi

Endurance Okpanachi

Related Posts

Binance Returns to South Korea via GOPAX Exchange Acquisition
Latest News

Binance Returns to South Korea via GOPAX Exchange Acquisition

3 February 2023

Binance has, according to new reports, acquired control of Gopax, a South Korean cryptocurrency trading platform. The acquisition marks Binance's return to the South Korean market after leaving two years prior. The Industry Recovery Initiative, a co-investment project created...

Australia Publishes Whitepaper on Crypto Asset Classification
Latest News

Australia Publishes Whitepaper on Crypto Asset Classification

3 February 2023

In the wake of the worldwide crypto industry regulatory push, the Australian Treasury has published a public consultation on the taxonomy of crypto assets. The four main product categories relating to the cryptocurrency industry are proposed to be separated...

Reliance, India’s Leading Retailer, to Adopt Digital Rupee CBDC at Its Stores
Latest News

Reliance, India’s Leading Retailer, to Adopt Digital Rupee CBDC at Its Stores

2 February 2023

Reliance Retail, the largest retail chain in India, is set to begin accepting retail payments in digital rupee, which is expected to greatly boost the adoption of the country's central bank digital currency (CBDC).  The gourmet retail line, Freshpik,...

Former Bank of China Advisor Asks China to Rethink Crypto Ban
Latest News

Former Bank of China Advisor Asks China to Rethink Crypto Ban

2 February 2023

Huang Yiping, a former member of the Monetary Policy Committee at the People's Bank of China, believes that the Chinese government should re-evaluate the sustainability of the cryptocurrency trading ban in the long term. Yiping expressed his concerns about...

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Swap Crypto

Markets Update

Bitcoin Dips Below $16.5K, Solana Records New Weekly Low, Down 23%

1 month ago

Solana Ends the Year on a Low

1 month ago

LUNA Classic (LUNC) Drops 8%, Bitcoin Dips to Weekly Low

1 month ago

Price Prediction for Nervos Network (CKB) 2023-2025-2030

1 month ago

VanEck Predicts Bitcoin To Drop Between $10K-$12K In Q1 2023

2 months ago

Tron’s Algorithmic Stablecoin, USDD Falls Below the 1:1 Dollar Peg

2 months ago
Read More

Spotlight

All about SolChicks

All about Algorand

All about Bitcoin

All about Goracle

Press Releases

Vybe Launches Bntyhntr: A Digitalized Treasure Hunt Product on the Algorand Chain

Vybe Launches Bntyhntr: A Digitalized Treasure Hunt Product on the Algorand Chain

byGuest Author
25 January 2023
0

...

BetDEX-Exchange-to-Launch-on-Solana-Mainnet-Ahead-of-2022-FIFA-World-Cup.jpg

BetDEX Exchange to Launch on Solana Mainnet Ahead of 2022 FIFA World Cup

byGuest Author
8 November 2022
0

...

BetDEX-Exchange-Becomes-First-Fully-Licensed-Sports-Betting-Exchange-on-Blockchain.jpg

BetDEX Exchange Becomes First Fully-Licensed Sports Betting Exchange on Blockchain

byGuest Author
1 November 2022
0

...

Metrika Partners with Axelar to Help Delegators Maximize Staking Rewards

Metrika Partners with Axelar to Help Delegators Maximize Staking Rewards

byGuest Author
12 October 2022
0

...

Y7 Marketing is Launching the First Decentralized Marketing DAO on Algorand

Y7 Marketing is Launching the First Decentralized Marketing DAO on Algorand

byGuest Author
17 August 2022
0

...

Read More
  • About Us
  • The Team
  • Careers
  • Contact
  • Partnerships

© Copyright 2022 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

No Result
View All Result
  • News
    • Latest News
    • Press Releases
  • Markets
  • Articles
    • Opinion
    • Explainers
    • Guest Posts
    • Sponsored Posts
  • Policy
  • Videos
  • Podcasts
  • Learn
    • DeFi Basics
    • Blockchain Fundamentals
    • Tutorials
    • Reviews
  • Research
    • Case Studies
  • Explore
    • NFTs
    • DAOs
    • Crypto Gaming
    • Metaverses
    • Web3
    • Stablecoins
    • CBDCs
    • DeFi
  • Markets Pro
    • DeFi Planet Pro
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00
Go to mobile version