The EU Will Force Banks to Disclose Data on Reserves in Crypto

The European Commission has implemented a new clause in the MiCA, the EU crypto regulation legislation, that requires banking institutions operating within the Union’s 27 countries to disclose information regarding the availability of reserves in digital currencies.

This has been set to ensure increased market transparency that will counterbalance the risk to the eurozone’s financial system.

Furthermore, the European Union authorities intend to reinforce control over crypto companies that provide storage and exchange services for digital assets, obliging them to safeguard reserves that cover all potential risks.

In 2022, banks such as Santander and Crédit Agricole opened their doors to crypto acquisitions and custody, showing a growing acceptance in the market.

The MiCA law was henceforth approved by the EU authorities, which will impose regulations on both blockchain companies and banks that have incorporated digital currencies.