EIOPA Calls for Stricter Crypto Rules Than Stocks

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EIOPA Calls for Stricter Crypto Rules Than Stocks or Real Estate

Written by Aaron S.,

Editor-In-Chief

Last Updated: March 28, 2025

Key Takeaways

EIOPA recommends that insurers hold capital equal to 100% of their crypto assets to limit risk;
The proposal would impose tougher rules on crypto than on stocks or real estate holdings;
Despite the stricter standard, EIOPA says policyholders wouldn’t face higher insurance costs.

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EIOPA Calls for Stricter Crypto Rules Than Stocks or Real Estate

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A European regulator has suggested that insurance companies should keep enough funds to match the full value of any crypto assets they hold.

This idea comes from the European Insurance and Occupational Pensions Authority (EIOPA), which shared its proposal with the European Commission on March 27. The aim is to reduce the risk to policyholders, as digital assets are known for their unstable prices.

Unlike other types of investments, such as real estate or company shares, crypto assets would need to be fully backed under this plan.

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EIOPA put forward four possible options for handling crypto risks. The first option was to make no changes. The second would apply an 80% risk level, which means insurers would need to keep capital equal to 80% of their crypto holdings. A third option raises that to 100%. The final option would look at the risks of tokenized assets broadly.

If adopted, the proposal would introduce stricter rules for crypto than for traditional investments. Under current EU regulations, real estate holdings by insurers are backed at 25%, while stocks fall between 39% and 49%. A 100% rate would set a much higher bar for crypto.

Still, EIOPA believes this would not lead to higher costs for people with insurance. The regulator said that the added requirement would improve protection without making insurance more expensive.

Meanwhile, Lisa Gordon, chair of investment bank Cavendish, recently suggested taxing crypto and reducing stock fees. Why? Read the full story.