Luzius Meisser, the head of the Swiss cryptocurrency company, shares his thoughts on the European Union’s approach towards cryptocurrency, suggesting they may seek to control it rather than ban it entirely.
E.U.’s Approach to Contain Crypto Rather than Ban it
According to Luzius Meisser, Chairman of Bitcoin Suisse, the creation of a barrier between cryptocurrency and the traditional finance system could be the optimal solution to maintain the viability of digital assets in the European Union. He made these comments in an interview with CoinDesk TV’s “All About Bitcoin” on Monday.
Luzius Meisser discussed the “containment” plan, which is one of the four strategies proposed by the Swiss-based firm Bitcoin Suisse.
He stated that this approach could be advantageous for both the cryptocurrency and traditional finance industries. According to him, EU officials are likely to follow this path of containment for cryptocurrency.
According to Meisser, EU officials aim to protect the traditional finance system from the negative effects of the cryptocurrency market. He added that this approach could also provide protection for digital assets from the faults and errors within the traditional finance system.
The Implications of EU’s Strict Crypto Banking Regulations on Banks and Clients
Recently, the European Union voted to implement severe limitations for banks interested in holding cryptocurrency. Banks are required to maintain one euro of their own capital for each euro invested in digital assets.
These requirements are in line with the regulations established by the Basel Committee on Banking Supervision, a global standard-setting organization for the banking industry.
Luzius Meisser believes that the rules proposed by the Basel Committee regarding cryptocurrency banking will become increasingly stringent. He cites the 1% to 2% rule as evidence of this trend. The restrictions, which are set to become enforceable in 2025, will restrict a bank’s involvement in cryptocurrency, capping it at 2%.
According to Meisser, the 1% to 2% rule mandates banks to hold an equal amount of equity for each Bitcoin they manage for clients. He later stated that this effectively bans banking with cryptocurrency, this implies that it’s no longer possible to have a standard bank account where the client only holds a claim in Bitcoin.
Meisser stated that the Committee’s regulations also mean that cryptocurrency will not be accepted as collateral. This makes it harder for banks to grant loans to clients in the future. According to Meisser, this would only allow banks to securely store cryptocurrency on behalf of clients.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.