FIA has responded to the European Banking Authority consultation on the draft regulatory technical standards on the capital treatment of crypto exposures under European Union’s capital requirements regulation III.
CRR III introduced a transitional prudential framework for institutions holding crypto-asset exposures. The EBA draft RTS further developed the relevant capital treatment for credit risk, counterparty credit risk, market risk and credit valuation adjustment risk for asset reference tokens and other crypto-assets exposures. It also aligns, to the extent possible, the capital treatment with the elements specified in the Basel standard on prudential treatment of crypto-asset exposures.
FIA makes the case why client clearing of crypto asset derivatives should not count towards the total exposure limit that institutions will be subject to for certain crypto assets, from a clearing member perspective. Further, FIA outlined its member's views on the preferred method for calculating own funds requirements for centrally cleared transactions in crypto asset derivatives.
