“An institution’s total exposure to class 2 crypto-asset exposures must not be higher than 1% of the institution’s Tier 1 capital at all times,” said the proposal backed by the Finnish Member of the European Parliament, imposing an absolute limit on how much bitcoin regulated lenders can hold. Tier 1 capital represents the highest-quality capital in a bank’s reserves.
Source: https://www.coindesk.com/policy/2022/08/17/eu-lawmakers-seek-to-cap-banks-bitcoin-holdings/?utm_medium=referral&utm_source=rss&utm_campaign=headlines