EU Regulators Push for Stricter Capital Rules on Crypto-Holding Insurers

European regulators are pushing for stricter capital requirements on insurers holding cryptocurrencies, marking a significant shift in the EU’s approach to digital assets.

The European Insurance and Occupational Pensions Authority (Eiopa) has advised the European Commission to enforce a 100% capital requirement on all crypto-related holdings.

If adopted, this measure would substantially raise the cost of maintaining digital assets, discouraging insurers from exposure to the sector.

Currently, most EU insurers allocate capital equal to 60–80% of their crypto assets, but the proposed regulation would require full coverage.

READ MORE:

Is the U.S. Government Quietly Selling Bitcoin?

Eiopa’s recommendation extends beyond Bitcoin and Ethereum, including stablecoins pegged to fiat currencies and tokenized assets linked to traditional investments such as stocks and bonds.

This marks an unprecedented level of capital restrictions for insurers dealing with any asset class.

Despite the firm stance, the immediate impact on the industry is expected to be minimal. By the end of 2023, European insurers collectively held around €655 million in crypto assets—less than 0.01% of the region’s total €9.6 trillion in assets.

A significant portion of this exposure was concentrated in Luxembourg, likely through investment funds rather than direct holdings.

Alexander Stefanov