On the 27th, the European Insurance and Pensions Authority (EIOPA) recommended to the European Commission that all EU insurance companies that hold crypto assets (virtual currencies) should hold a capital reserve asset on a 1:1 basis.

The reasons cited are the inherent risks and high volatility of these assets.

EIOPA's empirical analysis of cryptocurrency data shows that the current 80% capital requirement applied to intangible assets underestimates the risks of cryptocurrencies and is insufficient.

The European Insurance and Pensions Authority (EIOPA) is the European Union's supervisory body for the insurance and pension sectors...