The European banking regulator is concerned about the shortage of crypto experts

On July 27, José Manuel Campa, President of the European Banking Authority (EBA), said he was “concerned” that the EBA would not be able to comply with the regulations mandated by the MiCA due to a lack of qualified personnel specializing in cryptocurrencies.

Campa said that the demand for specialized staff in the technology and cryptocurrency space in Europe is “highly sought after across society”, making it almost impossible for the EBA to recruit staff sufficiently specialized to meet the needs of the new to fulfill job offers.

The EBA was created in the wake of the financial crisis to ensure that European banks have enough capital to deal with any economic problem. As the crypto ecosystem grew, part of its functions included monitoring some stablecoins and cryptocurrencies used for payment in Europe.

The EBA is concerned about the dynamic nature of the crypto industry

Campa noted that the agency is concerned about the planning logistics of how to correctly exercise its new powers because while it is almost 3 years away from knowing exactly which digital currencies the EBA will oversee, a lot can happen in that time in the crypto ecosystem due to its dynamic creative nature.

“My concern is more to ensure that the risk we have identified . . . [in the crypto market] is properly managed. If we don’t do as well as we should have, we’ll have to live with the consequences.”

On the other hand, the EBA official was optimistic about the global macro scenario, noting that a financial crisis in Europe is highly unlikely, at least in the “short term”, despite the region’s high inflation and economic contraction as a whole.

“We are not in a macro [economic] In an environment that is indicative of a recession, we are in a macro environment that is indicative of slower growth. . . I’m not worried that the banks will actually cut credit.”

MiCA regulations will come into effect later in 2023

The controversial MiCA sets several rules for the international regulation of the crypto ecosystem in Europe. It affects issuers of cryptocurrencies, exchange platforms and wallets. It mainly focuses on stablecoins and how the cryptosphere can become more secure and stable.

According to Bruno Le Maire, France’s economy minister, regulation will bring an end to the “crypto wild west” where the lack of regulation has facilitated many thefts and scams by people who exploit loopholes in the law to commit their crimes.

Therefore, the EBA has little time to put together a specialized cryptocurrency team to enforce MiCA, especially as the independent agency does not have the same budget as other agencies and crypto companies around the world.

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