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The European Insurance and Occupational Pensions Authority (EIOPA), which oversees the insurance and occupational pensions sectors in the EU, recommends imposing stricter capital requirements for insurers with crypto holdings.\u00a0<\/span><\/p>\n In a<\/span> statement,<\/span><\/a> the regulator says it advised the European Commission to introduce a 100% capital requirement for digital assets held by insurance companies.<\/span><\/p>\n The proposed rule will apply regardless of how insurance firms label their crypto holdings in the balance sheet or whether they have direct or indirect exposure to digital assets\u00a0<\/span><\/p>\n \u201cThe European Insurance and Occupational Pensions Authority published today its technical advice to the European Commission, recommending that a one-to-one capital requirement be applied consistently to all crypto holdings of EU (re)insurers.\u201d<\/span><\/i><\/p>\n The regulator says capital requirements should capture the risks associated with crypto assets, including extreme price movements, market manipulation, lack of price transparency and low liquidity.\u00a0<\/span><\/p>\n \u201cEIOPA considers a 100% haircut in the standard formula prudent and appropriate for these assets in view of their inherent risks and high volatility.\u201d<\/span><\/i><\/p>\n EIOPA says insurance companies operating in the region do not yet have significant exposure to crypto. The regulator\u2019s technical advice <\/span>report<\/span><\/a> says that in the last quarter of 2023, EU insurers invested only \u20ac655 million ($708.68 million) in the nascent asset, which represents just 0.0068% of their \u20ac9.6 trillion ($10.39 trillion) in total assets.<\/span><\/p>\n \u201cOverall, the investments of undertakings in crypto-assets are immaterial.\u201d<\/span><\/i><\/p>\n According to the Financial Times, EU insurers currently <\/span>allocate<\/span><\/a> capital equal to 60% to 80% of the value of their crypto assets.<\/span><\/p>\n Follow us on X<\/a>, Facebook<\/a> and Telegram<\/a><\/span><\/em>   Generated Image: DALLE3<\/span><\/em><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" The European Insurance and Occupational Pensions Authority (EIOPA), which oversees the insurance and occupational pensions sectors in the EU, recommends imposing stricter capital requirements for insurers with crypto holdings.\u00a0 In a statement, the regulator says it advised the European Commission to introduce a 100% capital requirement for digital assets held by insurance companies. The proposed […]<\/p>\n","protected":false},"author":2,"featured_media":385955,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-385951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/385951","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=385951"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/385951\/revisions"}],"predecessor-version":[{"id":385956,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/385951\/revisions\/385956"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/385955"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=385951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=385951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=385951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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