Europe’s Insurance Regulator Wants 100% Crypto Asset Coverage — Here’s What It Means
The European Insurance and Occupational Pensions Authority (EIOPA) has proposed a new regulation requiring insurers to maintain capital equivalent to the full value of their cryptocurrency holdings.
The recommendation, included in a technical advice report to the European Commission on March 27, reflects a growing concern over the volatility and risks associated with digital assets.
Policy Recommendations and Potential Implications
Unlike traditional assets such as stocks or real estate, which require insurers to hold only partial capital reserves against their exposure, crypto holdings would be subject to a 100% capital charge.
EIOPA stated that this conservative approach is justified due to the high volatility of assets like Bitcoin…
