European Banking Authority Unveils New Risk Guidelines For Cryptoassets

[Ben Graham]

The European Union (EU) 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 outlining how banks must manage exposure to cryptoassets.

With this, the EBA has also set stricter capital requirements for banks holding digital assets. But, EBA’s new draft – that falls under Capital Requirements Regulation (CRR) – provides a regulatory green light for banks that were hesitant to enter the crypto market due to uncertainty.

 On 5 August 2025, the EBA published its final draft Regulatory Technical Standards (RTS) which specify the technical elements necessary for institutions to calculate and aggregate cryptoasset exposures in relation to the prudential treatment of such exposures.

“The RTS address implementation aspects and will ensure harmonisation of the capital requirements on crypto-asset exposures by institutions across the EU,” the EBA said. 

EBA publishes new risk guidelines for cryptoassets. EU Authority sets new rules for how European banks must determine and oversee cryptoassets under new capital rules connected with Basel and MiCA https://t.co/Iq07aeHbiW #fundadmin #Custody pic.twitter.com/vrodt7Zryh

— Asset Servicing Times (@ASTimes_) August 6, 2025

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New Guidelines Will Help Create Single, Consistent Rules For All Financial Institutions

“Institutions have shown increasing interest in getting involved in crypto-assets activities,” the EBA said.

According to the EBA, this interest is driven by the potential for new revenue streams and the need to stay competitive.

“Institutions are exploring various roles, including acting as custodians of crypto-assets, issuing crypto-assets, and providing related services such as trading and lending on behalf of their clients,” the EBA said.

The banks will now be required to implement specific and detailed risk models for their crypto holdings. The EBA’s draft demands rigorous models to account for credit risk, market risk and counterparty credit risk among others.

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ESMA Outlines Framework For Assessing Competence Of Employees In Crypto Firms

The European Securities and Markets Authority (ESMA) released new guidelines to assess competence requirements for employees working in crypto-related businesses. Furthermore, the new guideline aligns with EU’s Markets in Crypto-Assets Regulations (MiCA).

In February, the European watchdog released a consultation paper. According to the paper, the key objective of the draft guidelines is to ensure a minimum level of knowledge and competence of staff providing advice and information on crypto-assets or crypto-asset services to clients.

Importantly, this step will “enhance investor protection and foster investors’ trust in the crypto-asset markets.”

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Key Takeaways

 By aligning with the EU’s MiCA regulation and international standards, this move signals a new era of maturity for the digital asset industry. Furthermore, it is paving the way for traditional banks to more safely engage with the crypto market. 

The EBA acts as the primary banking watchdog for the entire European Union. Importantly, its mission is to ensure the stability of the European financial system.

 

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