EIOPA proposes one-to-one capital requirements for EU insurers’ crypto asset holdings

Written by Adam Cadle

27/03/2025

EIOPA has published its technical advice to the European Commission (EC), recommending that a one-to-one capital requirement be applied consistently to all crypto holdings of EU (re)insurers.

EIOPA said it considers a 100% haircut in the standard formula prudent and appropriate for these assets in view of their inherent risks and high volatility.

“While the Capital Requirements Regulation (CRR) and the Markets in Crypto-Assets Regulation (MiCAR) include transitional prudential measures for crypto assets, the EU’s regulatory framework for (re)insurers so far has lacked specific provisions on crypto assets,” EIOPA said.

“As a result, (re)insurers currently classify their crypto assets without a consistent approach. This raises concerns about the risk sensitivity of these practices and the level of prudence associated with them.”

EIOPA's empirical analysis of historical crypto asset data suggests that current capital weight options – such as the 80% stress level applied to intangible assets – in fact underestimate the risks associated with crypto exposures.

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