EU Watchdog wants the CRIPTO FONDINGS insurer 100% covered, referring to instability – TradingView News

The European Union insurance authority proposed a rule of covering that the mandals of insurance companies would maintain equity equal values ​​of their cryptological means as part of measure to mitigate risks for policies.

The new proposal for European insurance and the Institute for Insurance and Professional Pensions in the Technical Council Report to the European Commission 27. Marta – would set a far stricter standard than other classes and real estate, which even must not be half.

“Eiopa considers 100% hairstyle in the standard cautious formula and suitable for these assets with respect to their inherent risks and great instability,” in a special statement.

Such a measure would meet the regulatory gap between capital requirements and markets in the Crypto-Funds (MICA), said Eiopa, noting that the European Union regulatory framework for insurance is lacking a special provision on cryptic.

Eiopa pointed out four options for the European Commission to consider – one: they do not change; Two: the term is 80% “stress level” to crypto means; and three: the term of 100% level of stress on the crypt.

The percentage of stress levels determine how much capital companies should keep to remain solvent.

The fourth option called on the European Commission to consider the risks of tokenized assets wider.

Eiopa said three options would be the most appropriate option.

“80% stress on the exposure value of crypto-funds does not act sufficiently cautiously”, while “100% stress is more appropriate and aligns with one of the approaches to crypto-means under CRR,” Eiopa said.

100% stress refers to the assumption that CRYPTO ASCET prices could fall by 100% and to diversify – expanding risks in different means – would not reduce this stress. Eiopa pointed out that bitcoin Btcusd and ether Ettusd In the past, 82% and 91% dropped.

100% Capital collection for CRIPTO ASSTS would reflect a far stricter approach compared to stocks, which range between 39% and 49% and real estate, which enters 25% of the solvency, in the Commission of the Solvency, which were set up in the Commission Delegated Regulation 2015/35.

Eiopa said that 100% Capital Fee for the CRIPTO (RE) insurance company should not be “overly burdened” and that there would be no material costs for fuses.

“Capital requirements would completely catch the risk of crypto-means with a positive impact on the protection of owners in case there are material exposures in the future in the future.”

The Eiopa acknowledged that the share of the CRIPTO-Assert (Re) insurance is only 655 million euros or 0.0068% of all companies in Europe – even that it is “irrelevant.”

“At the same time, the CRIPTO assets of high risk investments that may result in the total loss of value,” Eiopa said, explaining why it recommends the option three.

Luxembourg and Sweden could hit the most difficult to hit the proposed rule

Insurers in Luxembourg and Sweden are likely to be most commonly, according to the K4 2023 report. Said by EIOPA, which was found that these two countries accounted for 69% and 21% of all cryptic exposure regarding the crypt.

Ireland, Denmark and Liechtenstein also accounted for 3.4%, 1.4% and 1.2% of companies.

Most of these companies are structured within funds, such as external means and held on behalf of unit policies related, Eiopa noticed.

Eiopa, however, admitted that the wider adoption of cryptic funds in the future may require more different approaches. “