The European banking regulator is concerned that it will not be able to find the specialized staff needed to oversee the European Union’s attempt to regulate the cryptocurrency market. The authority is also concerned about the lack of clarity regarding which digital assets it is supposed to oversee.
Banking supervision faces staffing problems that threaten its ability to regulate crypto in the EU
Retaining talent for anything crypto-related is a ‘big concern’, the man who heads the European Banking Authority (EBA)EBA), revealed in an interview. The CEO added, citing the Financial Times, that the deficit also applies to other areas, including technology and digitalisation, with specialists in high demand across society.
The Paris-based EBA was created in 2011, after the recent financial crisis, to ensure that European banks had enough capital to overcome similar challenges in the future. Recently, he was also tasked with overseeing Europe’s attempt to regulate cryptocurrency. Now she says she is also concerned about planning new forces.
European institutions recently approved a draft regulatory framework called Markets in Crypto Assets (Mica). But the authority won’t know which digital currencies, cryptocurrencies used for payments, and stablecoins have authority to supervise until near 2025, when the legislation is expected to come into effect, its president noted.
José Manuel Campa’s comments underscore the difficulties many other organizations face trying to catch up with the fast-moving crypto sector. Banking institutions, fintechs, and consulting firms offer wide-ranging packages to attract professionals whose skills are in high demand. Record inflation across the eurozone has also driven up wage demand, the report notes.
Kampa acknowledged that salaries at the body are in line with those of the European Commission and the EBA would not be free to adjust them. He is also concerned that due to the dynamic nature of the crypto sector, regulation may be delayed until he does not know exactly what his agency will face in a couple of years.
The EBA’s top official noted that he is not concerned about reputational risk if the authority makes mistakes in overseeing the industry. “My concern is to make sure that the risks we have identified are properly managed. If we do not do what we should, we will have to live with the consequences.”
Do you expect EU authorities to raise the wages of crypto experts working in the regulatory agencies charged with overseeing the crypto space? Tell us in the comments section below.
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