EIOPA proposes 100% capital requirement for insurers’ crypto holdings

EIOPA recommends a 100% capital charge on insurers’ crypto holdings to limit volatility-driven spillovers under Solvency II updates.

Live Market Updates

Latest Financial News

neutral

EIOPA proposes 100% capital requirement for insurers’ crypto holdings

EIOPA proposes 100% capital requirement for insurers’ crypto holdings
The European Insurance and Occupational Pensions Authority (EIOPA) has recommended a blanket 100% capital requirement for insurers’ crypto exposures in its advice on standard formula capital treatment. 
 The technical advice aims to prevent spillovers from crypto volatility into the insurance sector by applying an undiversified 100% stress to crypto exposures. The proposal will feed into Solvency II delegated rules and is likely to face debate in EU policymaking forums ahead of final adoption.
Tags:
  • crypto
  • regulation