The European Banking Authority (<a href="https://crypto.news/tag/EBA/" rel="noopener noreferrer nofollow">EBA</a>) is proposing testing to see if tensions in non-bank financial institutions (NBFIs), including cryptocurrency-related entities, will impact lenders.
According to the <a href="https://www.ft.com/content/c7239712-fc92-48ec-8438-dafd108bbb44" target="_blank" rel="noopener noreferrer nofollow">Financial Times</a>, EBA chairman José Manuel Campa expressed concern about the need to “deepen the links between banks and other financial firms.”
<blockquote class="wp-block-quote">
 “We should be doing more, and we will be doing more. We need to have an understanding of the whole underlying chain in NBFIs.” <cite>José Manuel Campa, EBA chairman </cite>
</blockquote>
The EBA has already taken some action to address the role that cryptocurrency could play in stressing the system. Last November, the regulator&nbsp;published draft rules on liquidity and capital requirements for stablecoin issuers&nbsp;under the EU’s new <a href="https://crypto.news/mica-explained-what-does-the-eus-first-crypto-regulation-mean-for-the-industry/" rel="noopener noreferrer nofollow">Markets in Crypto-Assets (MiCA)</a> regulation.
The EBA has also proposed rules requiring individuals with a stake of more than 10% in a crypto company&nbsp;to be screened for convictions or sanctions&nbsp;and directing crypto companies to monitor customers using privacy coins or self-hosted wallets to identify potential money laundering.
The EBA’s latest initiatives are directly linked to <a href="https://crypto.news/eu-mica-crypto-regulatory-framework-approved/" rel="noopener noreferrer nofollow">the adoption of MiCA</a> last spring. 27 EU member countries unanimously supported the bill. The document introduces institutional regulation of the issuance of cryptocurrencies and establishes a uniform legal regime for cryptocompanies in the European Union. The EU began work on a package of regulatory acts back in 2020. The law will officially come into force 20 days after publication, but the rules for cryptocurrency exchange <a href="https://crypto.news/crypto-companies-seek-more-time-amid-new-mica-regulations/" rel="noopener noreferrer nofollow">will only begin to apply</a> in December 2024.
You might also like: <a href="https://crypto.news/spain-reportedly-six-months-ahead-of-2026-mica-deadline/" rel="noopener noreferrer nofollow"> Spain reportedly six months ahead of 2026 MiCA deadline </a>

EU banking watchdog to probe links between banks and crypto entities

crypto.news

Other articles published on Jan 3, 2024

Bitcoin 2024: PlanB Predicts $100k Amidst New Year Rallies

Unisat's BRC-20 Upgrade Plans Face Opposition from BRC20 Creator, Resulting in Protocol Split

Federal Reserve Meeting Minutes Shake Crypto Markets

Ethereum’s price skyrockets – What’s up with that?

Playbux to introduce new funding mechanism instead of ICO

Ascending the Ranks: Why Rebel Satoshi Is Becoming the Investment of Choice Over Cardano and Opti...

Join our free newsletter for daily crypto updates!