Cryptocurrency regulations around the world have changed significantly. In Europe, the crypto regulatory scene is about to change because of the MiCA regulations. However, the European Banking Authority has said that it lacks the crypto experts needed to enforce these regulations and protect investors in the space.
European Banking Authority concerned over lack of crypto experts
Jose Manuel Campa, the chair of the European Banking Authority, has stated that the organization is concerned about how it will operate under its new powers since it will not have the complete range of digital assets it will oversee until 2025, when the new European regulations take effect.
In an interview, Campa said that retaining crypto talent was a concern, especially in the technology, crypto and digitization sectors. Talents in these areas were witnessing increasing demand.
The ECB is responsible for overseeing stablecoins and digital tokens used for payments. Rules for these assets are outlined in the Markets in Cryptoassets Regulation (MiCA). The regulator is now focusing on a key issue impacting institutions in the fast-changing crypto sector: attracting and keeping new talent.
Private companies looking into digital assets are paying hefty wages to attract this talent. However, the salaries offered by the EBA are as defined by the European Commission, and the institution was concerned that it did not have the adequate resources to attract top crypto experts.
Campa added that the dynamic nature of the cryptocurrency spaces made regulations lag behind. However, he admitted that after three years, cryptocurrencies will transform and gain new use cases that will not be anticipated. He also referred to cryptocurrencies as a “wild west.” The main concern of the regulator was making sure that people who buy Bitcoin and other cryptocurrencies were protected from risks.
ECB chair discusses the market recession
The chair of the ECB also addressed the recession in the economy. He denied that a financial crisis was looming, adding that banks in Europe would have the ability to sustain lending within the economy.
He added that the current macro environment showed that there was decreased growth in the economy. Therefore, there was no concern that European banks will curtail credit. This is a different view from that of officials from the Bank of England, who have pointed to “tentative signs” of banks holding back.
The EBA will accurately assess how to handle the exposure of banks to the rising interest rates in 2023’s stress test. This is an annual process that ensures banks have enough liquidity to survive any crisis they could be subjected to if the economy enters into a recession.
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