On 24 October 2024, the European Insurance and Occupational Pensions Authority (EIOPA), in response to the European Commission’s call for a advice of 30 April 2024, published a Consultation Paper on its draft technical advice on standard formula capital requirements for crypto assets under Directive 2009/138/EC (Solvency II), the EU’s regulatory framework for insurers. The deadline for the advice is 30 June 2025. The draft advice details the current prudential treatment of investments in crypto-assets, assesses its appropriateness and recommends potential changes to the standard formula treatment. EIOPA proposes to introduce a 100% stress on crypto-assets, regardless of their balance sheet and of the (in)direct nature of the exposures. For some crypto assets such as asset-referenced tokens (ARTs) and e-money tokens (EMTs), EIOPA’s draft advice considers that a differentiated treatment could be appropriate and suggests a review of the treatment in the future.
Stakeholders are invited to submit their feedback on the Consultation Paper by filling in the online survey by 16 January 2025.
