FT: The EU plans to impose a 100% capital requirement on encryption assets held by insurance companies.

According to FT, European regulatory authorities announced a proposal on Thursday to impose a 100% capital requirement on European insurance companies holding crypto assets, marking the most stringent capital regulations on Bitcoin and other digital assets in EU history, aimed at limiting the involvement of insurance institutions in the crypto asset sector. Currently, most EU insurance companies allocate only about 60% to 80% of their capital for their crypto assets. As of the end of 2023, EU insurance institutions held a total of 655 million euros in crypto assets, accounting for less than 0.01%. The proposal is still pending approval from the European Commission.

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