He wants to monitor the European Union covered with 100 % covered insurance companies, citing volatility

The European Union Insurance Authority proposed a comprehensive base that would impose insurance companies to maintain capital equal to the value of their encryption property as part of a procedure to alleviate the risk of document holders.

New an offer -It would display the European Insurance Authority and professional pensions in a technical advice report to the European Commission on March 27-a stronger standard of other assets, such as stocks and real estate, which do not even need to be half creative.

“Eiopa is a 100 % haircut in the wise standard formula and is suitable for these origins in light of its inherent risks and high fluctuations,” He said In a separate statement.

Such a procedure would fill the organizational gap between organizing capital and market requirements in regulating encrypted trim (MICA), said Eiopa, noting that the organizational framework of the European Union of Insurance Companies currently lacks specific provisions on encryption assets.

Eiopa has set four options for the European Commission to consider – one: no changes; Second: Delegating the “stress level” by 80 % for encryption assets; Three: The level of stress is 100 % for the encryption assets.

The percentage of stress level determines the amount of capital companies you need to keep to stay solids.

The fourth option called on the European Commission to consider the risk of distinctive assets on a larger scale.

Eiopa said the third option will be the most appropriate option.

“Stressing by 80 % of the value of exposing encrypted assets does not seem wise enough,” while “stress by 100 % is more suitable and corresponds to one of the transitional treatment approaches of encrypted couples under CR”, I Ayyuba said.

The 100 % stress indicates that the prices of encryption assets may decrease by 100 % and that diversification – spreading risks across different assets – will not reduce this tension. Eiopa noted that Bitcoin (BTC) and Ether (ETH) decreased 82 % and 91 %, respectively, in the past.

Capital fees will reflect 100 % for encryption assets a more strict approach compared to stocks, which ranges between 39 % and 49 %, and real estate, which bears capital fees by 25 %, According to To the requirements of the prescribed capital stipulated in the regulations delegated in the committee 2015/35.

EIOPA said that capital insurance fees are 100 % on insurance undertakings related to encrypted assets (re -re -) should not be “very stressful” and that there will be no material costs for documentary holders.

“Capital requirements would fully embody the risk of encrypted assets with a positive impact on the protection of the policy in the event of material exposure in the future.”

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EIOPA acknowledged that the category of insurance pledges in encrypted assets (Re Ras) represents only 655 million euros or 0.0068 % of all pledges in Europe-even indicating it as “unimportant”.

Eiopa said: “At the same time, encryption assets are high -risk investments that may lead to complete value loss,” explaining the reason for the third option.

Luxembourg and Sweden can reach the maximum of the proposed base

The insurance companies in Luxembourg and Sweden are likely to be the most affected, according to the Q4 2023 report mentioned by Eiopa, which found that these two countries represent 69 % and 21 % of all exposure associated with encrypted assets between (re -insurance pledges).

Ireland, Denmark and Liechtenstein also constituted 3.4 %, 1.4 % and 1.2 % of pledges.

Eiopa pointed out that most of these pledges are organized within the funds, such as the money circulating on the stock exchange, which were held on behalf of the documents related to the unit.

However, Eiopa admitted that the wider adoption of future encryption origins may require a more “compact approach”.

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