Europe’s banking sector regulators are concerned that it will not manage to find the specialized personnel needed to oversee the EU’s effort to regulate the crypto market. The authority is also concerned about which digital assets should be monitored.
Banking watchdog faces staffing problems threatening ability to regulate crypto in EU
Retention of talent for anything crypto-related is a “major concern”, the man who chairs the European Banking Authority (EBA) revealed in an interview. The deficit also applies to other areas, including technology and digitization, that have a high demand for experts across society, the executive quoted by the Financial Times said.
Paris-based EBA was established in 2011 after the last financial crisis, to ensure that European banks have sufficient capital to meet similar challenges in the future. More recently, it was also tasked with overseeing Europe’s bid to regulate cryptocurrencies. Now it says that he is also worried about planning his new powers.
European institutions have recently agreed on a draft regulatory framework called Markets in Crypto Assets (MiCA). But the authority will not know which digital coins, cryptocurrencies used for payments, and stablecoins have the authority to supervise until closer to 2025, when the law is expected to go into effect, its chief indicated. .
Jose Manuel Campa’s remarks underscore the difficulties faced by many other organizations trying to capture the rapidly growing crypto sector. Banking institutions, fintech firms and consultancies are offering comprehensive packages to attract professionals whose skills are in high demand. The report said that record inflation in the eurozone has also increased demand for wages.
CAMPA acknowledged that the authority’s salaries align with those of the European Commission and that the EBA would not have the freedom to adjust them. He is also concerned that due to the dynamic nature of the crypto sector, regulation may lag behind, so he does not know exactly what his agency will face in two years’ time.
The top EBA official commented that he was not concerned about the risk to reputation if the authority made a mistake in overseeing the industry. “My concern is more about making sure that the risk we have identified is managed properly. If we don’t do as well as we should have, we have to live with the consequences,” he elaborated.
Do you expect the EU authorities to raise remuneration for crypto experts working in regulatory bodies overseeing the crypto space? Tell us in the comments section below.
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