EBA publishes new risk guidelines for cryptoassets
05 August 2025 UK
Image: areporter/stock.adobe.com
The European Banking Authority (EBA) has unveiled its draft framework on the prudential treatment of crypto-asset exposures, covered by Capital Requirements Regulation.
The elements that organisations are required to calculate and accumulate cryptoasset exposures are simplified under the rules.
The new etiquette intends to generate a consistent framework for managing digital assets as the EU shifts towards a more unified crypto regulatory ecosystem.
The EBA’s rules correspond with the Basel Committee’s international standards on crypto risk and under the Markets in Crypto-Assets Regulation (MiCA) guidelines.
Crypto assets are classified into three key categories: unsupported tokens such as Bitcoin, asset-referenced token connected to fiat or commodities and tokens substantiating other crypto assets
Organisations are required to administer definite risk models to detail credit risk, market risk, counterparty credit risk and credit valuation adjustment risk.
Hedging, netting and position aggregation will all need to be accounted for when determining exposure levels.
Industry participants have welcomed the removal of the “prudent valuation” requirement for fair-valued crypto exposures, a noteworthy shift from initial consultations.
The draft sets out how long and short positions should be accumulated to guarantee exposure computing.
These interim guidelines, as part of Article 501d of CRR 3, give banks the means to partake in crypto-related exercises - involving custody, issuance and brokerage — while sticking to changeable prudential standards.
Banks with current crypto exposure will be required to amend their internal risk models, compliance systems and reporting procedures in agreement with the latest standards.
The elements that organisations are required to calculate and accumulate cryptoasset exposures are simplified under the rules.
The new etiquette intends to generate a consistent framework for managing digital assets as the EU shifts towards a more unified crypto regulatory ecosystem.
The EBA’s rules correspond with the Basel Committee’s international standards on crypto risk and under the Markets in Crypto-Assets Regulation (MiCA) guidelines.
Crypto assets are classified into three key categories: unsupported tokens such as Bitcoin, asset-referenced token connected to fiat or commodities and tokens substantiating other crypto assets
Organisations are required to administer definite risk models to detail credit risk, market risk, counterparty credit risk and credit valuation adjustment risk.
Hedging, netting and position aggregation will all need to be accounted for when determining exposure levels.
Industry participants have welcomed the removal of the “prudent valuation” requirement for fair-valued crypto exposures, a noteworthy shift from initial consultations.
The draft sets out how long and short positions should be accumulated to guarantee exposure computing.
These interim guidelines, as part of Article 501d of CRR 3, give banks the means to partake in crypto-related exercises - involving custody, issuance and brokerage — while sticking to changeable prudential standards.
Banks with current crypto exposure will be required to amend their internal risk models, compliance systems and reporting procedures in agreement with the latest standards.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
