🇪🇺 EBA Finalizing Strict Crypto Rules for EU Banks

The European Banking Authority (EBA) is set to roll out draft regulations requiring banks to assign a 1,250% risk weight to "unsecured" crypto assets like Bitcoin ($BTC) and Ethereum ($ETH).

📉 What This Means:

Under the proposed framework, EU banks holding crypto on their balance sheets would face extremely high capital requirements.

🔍 Example:

To hold €1 million worth of $BTC, a bank would need to set aside €12.5 million in capital — a move designed to limit exposure to volatile digital assets.

📜 Once finalized, the rules will become part of delegated EU regulation and move to the European Parliament and Council for approval.

🧠 Implications:

This could significantly restrict institutional crypto adoption within the EU banking sector, while pushing innovation toward decentralized or offshore alternatives.