Protected: Crypto regulation under CRR III: what transitional provisions and current developments are in place?
- 12/02/2026
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- Reading time: 4 minutes
Crypto assets have evolved far beyond a niche interest for tech-savvy investors. An increasing number of European banks now hold crypto assets on behalf of their customers, issue tokenized bonds or trade proprietary positions. Yet, the rapid expansion of market volume and the inherent volatility of this asset class continue to raise concerns about their financial stability.
In response, the Basel Committee introduced a global framework for capital requirements on crypto asset exposures in 2022, guided by the “same risk, same activity, same treatment” principle. The European Union adopted this approach through the CRR III[1].
In response, the Basel Committee introduced a global framework for capital requirements on crypto asset exposures in 2022, guided by the “same risk, same activity, same treatment” principle. The European Union adopted this approach through the CRR III[1].
You should now be able to talk about these key points of the article:
- What are the three main groups of crypto exposures distinguished in CRR III?
- Group A includes tokenized representations of traditional assets (e.g. a bond on a blockchain), where the same credit and market risk as the physical instrument exists and therefore the risk weight of the underlying applies.
- Group B comprises ARTs (asset-referenced tokens), i.e. stablecoins that have an increased value stabilization and governance risk and are therefore assigned a flat risk weight of 250%.
- Group C serves as the catch-all category for all other crypto assets, such as Bitcoin and carries a risk weight of 1,250%, effectively requiring full capital backing. In addition, all exposures in this group together must not exceed 1% of Common Equity Tier 1 capital.
- What additional obligations does CRD VI impose with respect to crypto-related risks? The CRD VI reinforces these qualitative expectations. Before launching a new crypto business model, banks must conduct an ex-ante risk assessment covering market, operational, legal and anti-money laundering risks. In the course of supervisory reviews (SREP), governance and risk control related to crypto risks will be examined and additional capital requirements may be imposed. Banks need to provide a robust framework for key management, cyber security and third-party management, otherwise they risk additional capital requirements.
- What role do CBDCs and stablecoins play within the new regulatory framework? The MiCAR (Markets in Crypto-Assets Regulation) provides clear demarcations and definitions for crypto assets. These include e-money tokens (EMTs), asset-referenced tokens (ARTs) and non-asset-referenced tokens. Central bank digital currencies (CBDCs) are explicitly excluded from both MiCAR and CRR III, as monetary policy rules – not banking supervision law – will continue to govern a future digital euro. Stablecoins are included as part of Group B and are subject to increased value stabilization and governance risks, resulting in a flat risk weighting of 250%.
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