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EU Regulators Investigate Crypto Exposure Risks to Banking Industry

EU Regulators Investigate Crypto Exposure Risks to Banking Industry

CointimeCointime2024/01/03 06:52
By:Cointime

The European Union (EU) is launching a probe into the links between banks and other financial firms, including cryptocurrency groups, due to concerns over potential contagion to banks. The investigation will focus on non-bank financial institutions (NBFIs), which hold almost half of the world's financial assets worth around $218 trillion. The European Banking Authority (EBA) will work with the European Systemic Risk Board and Financial Stability Board to develop a better understanding of how shadow banking shock affects the wider financial system. This move may hinder crypto growth in the region, despite the industry awaiting Markets in Crypto Assets Regulation (MiCA) and crypto exchanges and companies expanding to the EU region.

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