The European Union organizer is organizing new capital bases for European insurance companies that maintain encryption assets
The European Insurance Authority and Professional Pensions (EIOPA), which oversees the sectors of insurance and professional pensions in the European Union, recommends imposing the most striking capital requirements for insurance companies with encryption holdings.
in statement, The organizer says it advised the European Commission to provide 100 % capital requirements for the digital assets that insurance companies maintain.
The proposed rule will be applied regardless of how to classify insurance companies on encryption property in the public budget or whether they have direct or indirect exposure to digital assets
“The European Insurance Authority and Professional Pensions today published its technical advice to the European Commission, and recommends that individual capital requirements be applied to all encryption possessions of the European Union insurance companies.”
The organizer says that capitalist requirements should acquire the risks associated with encryption assets, including maximum price movements, market manipulation, lack of price transparency and low liquidity.
“EIOPA is a 100 % haircut in the standard formula of wisdom and suitable for these origins due to its inherent risks and high fluctuations.”
Eiopa says that the insurance companies operating in the region do not have a large encoding. The technical advice of the regulator a report He says that in the last quarter of 2023, European Union insurance companies invested only 655 million euros ($ 708.68 million) in emerging assets, which represents only 0.0068 % of 9.6 trillion euros ($ 10.39 trillion) in total assets.
“In general, the investments of pledges in encrypted couples are not fundamental.”
According to the Financial Times, the European Union insurance companies are currently Assignment The capital is 60 % to 80 % of the value of the encryption assets.
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