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EU Regulators Push for Stricter Capital Rules on Insurers’ Crypto Holdings

  • EU regulators are pushing for stricter capital rules on insurers' crypto holdings to address concerns over volatility and financial stability.
  • The European Insurance and Occupational Pensions Authority (EIOPA) has proposed several options for regulating insurers' exposure to cryptocurrencies.
  • The most aggressive approach would require insurers to assume crypto investments could lose their entire value, resulting in a 100% capital charge.
  • EIOPA argues that historical data showing significant losses in major cryptocurrencies justifies the need for these stricter rules.

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