The European Union has taken yet another step towards a fully regulated crypto landscape. The European Banking Authority (EBA), the EU’s top banking regulator, has released a pivotal news draft framework that outlines how banks manage their exposure to crypto assets.
This also sets stricter capital requirements for banks holding digital assets. However, the new draft of the EBA – falls under the Capital Requirements Regulation (CRR) – provides a green light of regulation to banks who have been hesitant to enter the crypto market due to uncertainty.
On August 5, 2025, EBA published a Final Regulatory Technical Standard (RTS) that specifies the technical elements needed by agencies to calculate and aggregate exposures of crypto assets in relation to the careful treatment of such exposures.
“RTS addresses implementation aspects and ensures harmonization of capital requirements for the exposure of crypto assets by institutions across the EU,” the EBA said.
The EBA has published new risk guidelines for CryptoAssets. EU authorities have set new rules on how European banks can determine and oversee cryptocurrency accounts based on new capital rules related to Basel and MICA https://t.co/IQ07AeHBIW #FundAdmin #custody pic.twitter.com/vrodt7zryh
– Asset service hours (@astimes_) August 6, 2025
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New guidelines will help you create a single, consistent rule for all financial institutions
“The agency shows an increasing interest in participating in code breaking activities,” the EBA said.
According to the EBA, this interest is driven by the potential for new revenue streams and the need to remain competitive.
“Institutions are exploring a variety of roles, including acting as cryptocurrency managers, issuing cryptocurrency and providing related services such as trading and lending on behalf of clients,” the EBA said.
Banks must implement certain detailed risk models for crypto holdings. The EBA draft calls for a strict model to explain, among other things, credit risk, market risk, and counterparty credit risk.
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ESMA outlines a framework for assessing the capabilities of employees in crypto companies
The European Securities and Markets Agency (ESMA) has released new guidelines for assessing the competency requirements of employees working in crypto companies. Furthermore, the new guidelines are consistent with the EU market under the Crypto Deduction Regulation (MICA).
In February, European Watchdog published a consultation paper. According to the paper, the key objective of the draft guidelines is to ensure the minimum level of knowledge and ability of staff to provide clients with advice and information about crypto assets or crypto assets services.
Importantly, the step is to “enhance investor protection and promote investors’ trust in the crypto assets market.”
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Key takeout
In line with the EU’s MICA regulations and international standards, the move shows new maturity in the digital asset industry. Additionally, it paves the way traditional banks can engage more securely in the crypto market.
The EBA serves as the leading bank watchdog across the European Union. Importantly, its mission is to ensure stability in the European financial system.
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