European Union: European Banking Authority published draft technical standards on the prudential treatment of crypto asset exposures under the Capital Requirements Regulation (No. EBA/RTS/2025/04)

On 5 August 2025, the European Banking Authority (EBA) published the draft technical standards on the prudential treatment of crypto asset exposures under the Capital Requirements Regulation. The standards apply to credit institutions with exposures to asset-referenced tokens referencing traditional assets, other crypto-assets, and tokenised traditional assets whose value depends on other crypto-assets. The standards establish a total exposure limit for “other” crypto-assets, meaning that the combined value of these crypto-asset exposures held by a credit institution must not exceed 1% of the institution’s Tier 1 capital. “Other crypto-assets” refer to crypto-assets that are neither tokenised traditional assets nor asset-referenced tokens (ARTs). The standards define methods for calculating own funds requirements for credit risk, counterparty credit risk, market risk, and credit valuation adjustment risk. It also includes rules for aggregating long and short positions and valuation requirements for certain crypto-assets under the Markets in Crypto-assets Regulation.