The cryptocurrency sector has proved to be very volatile over the past few months, and regulators are now turning their attention towards the sector. However, regulating the crypto space has not been very easy, and the president of the European Banking Authority has said that the lack of experts in the institution made it lag behind.
European Banking Authority concerned over lack of crypto experts
On Wednesday, the President of the European Banking Authority, Jose Manuel Campa, expressed his concerns over the institution’s lack of capability to ensure compliance with the MiCA regulations because of the lack of experts in cryptocurrencies.
Campa said that demand for specialized people in crypto technology across Europe had increased significantly, making it nearly impossible for the EBA to employ staff specialized to meet the requirements of new crypto job offers proposed by the EBA.
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The EBA is an organization created during the financial crisis, ensuring that European banks had the capital needed to solve economic challenges. The growth of the cryptocurrency sector has defined the roles of the ECB as regulating stablecoins and cryptocurrencies used in Europe as a means of payment.
Campa said that the agency was concerned of the logistics of how to exercise its newly acquired regulatory authority because of the massive size of the crypto sector and the growth levels it would achieve in the future, given its dynamic nature. He added that his concern was to ensure risks were identified and managed.
The EBA official further expressed his optimism about the global macro sector, saying that a financial crisis in Europe was not likely to happen in the short-term. He also said that the rising inflation levels and the economic recession witnessed in the region would not trigger a financial crisis.
Europe to implement MiCA regulations in 2023
The MiCA regulations propose several measures to support global regulations in the European crypto sector. The MiCA regulations affect the issuers of cryptocurrencies, exchanges and crypto wallets. The regulations target stablecoins and measures that will promote the security and stability of the crypto sector.
The Minister of Economy in France, Bruno Le Maire, said that MiCA regulations would end the unregulated nature of the cryptocurrency sector. However, the EBA now notes that implementing these regulations needs a team of crypto experts to guarantee there are no loopholes that can be exploited.
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