European Banking Authority to Test Impact of Cryptocurrencies on Lenders

The European Banking Authority (EBA) is proposing tests to assess whether tensions in non-bank financial institutions (NBFIs), including cryptocurrency-related entities, could impact traditional lenders. The EBA has already taken steps to address potential stress from cryptocurrencies by publishing draft rules on liquidity and capital requirements for stablecoin issuers under the EU’s Markets in Crypto-Assets (MiCA) regulation. Additionally, the EBA has proposed rules related to screening individuals with significant stakes in crypto companies for convictions or sanctions and requiring crypto companies to monitor customers using privacy coins or self-hosted wallets to identify potential money laundering. These initiatives are part of the regulatory framework established with the adoption of MiCA in the European Union. (Source: Crypto.news)