ECB: EU Banks Should Start Capping Bitcoin Holdings Before BCBS Norms Come into Force

EU banks should begin capping bitcoin holdings before global norms set by the Basel Committee on Banking Supervision (BCBS) take effect, the ECB said. While cryptocurrencies have yet to have a significant impact on EU banks, banks should treat these assets as risky assets and limit their holdings immediately, the ECB said. The ECB also said that the BCBS standard is not yet legally binding in the EU, but that if banks wish to enter the market, they should comply with the standard and take the normative requirements into account in their business and capital planning.