The European Union’s banking regulator, which is preparing to enforce new rules on the crypto industry by 2025, has raised concerns about sourcing the appropriate staff to enforce the regulations.
European Banking Authority Worries About Crypto Regulation
As cryptocurrencies become more established, the scrutiny of regulators worldwide has heightened around the industry. Regulators in the Eurozone are currently working on developing unified crypto regulation.
However, in an interview, José Manuel Campa, the current chairman of the European Banking Authority, voiced his concerns that the agency does not possess the required capacity to supervise digital assets.
The EBA Acknowledges the High Demand for Crypto Talent
One of José Manuel Campa’s major difficulties lie in the hiring and retaining of specialized staff. According to the banking regulator chief, the problem largely pertains to the high demand for crypto talent.
Campa explained that, if recent rates of growth continue, in three years cryptos may have “moved and transformed into other uses that I cannot anticipate.” In his Wednesday interview, the EBA chief said:
"My concern is more about making sure the risk we have identified ... is properly managed. If we don't do as well as we should have, we'll have to live with the consequences."
Furthermore, Manuel Campa is troubled about the means by which the agency will plan the logistics of enforcing its new powers, particularly because it won’t know exactly which cryptocurrencies it will be responsible for supervising until 2025, due to the ever-changing crypto landscape.
On the Flipside
- The European Council’s presidency and the European Parliament recently finalized its ‘Markets in Crypto Assets‘ (MiCA) legislation for stablecoins.
Why You Should Care
Campa’s fears may stem from the fact that the regulations being put together by the ECB will have be applied across all 27 EU member nations.
For more about the ECB regulations, check out:
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