Jose Manuel Campa (President of the European Banking Authority) stated that he was concerned that the EBA couldn’t comply with regulations ordered by MiCA because of a lack of qualified personnel who are specialized in cryptocurrency.
Campa stated that there is a high demand for specialists in the technology and cryptocurrency areas in Europe. Therefore, it has been almost impossible for EBA to find staff skilled enough to fulfill the requirements for new job opportunities.
In the aftermath of the financial crisis, the EBA was established to ensure that European banks have enough capital to deal with any economic problems. The EBA was created to oversee some stablecoins as well as cryptocurrencies that are used in Europe for payment.
EBA Worried by the Dynamic Nature of Crypto Industry
Campa stated that the agency is worried about how it will plan for its new powers. Even though the EBA is only 3 years away and knows exactly which digital currencies they will oversee, there are many things that can happen in the crypto ecosystem due to its dynamic creativity.
“My concern is to ensure that the risk we have identified is. . . The crypto market is well managed. We’ll have to accept the consequences if we don’t perform as well as we should.
The EBA official, on the other hand, was positive about the global macro situation, noting that a European financial crisis is unlikely, at least in short term, despite high inflation and economic contraction in the region.
“We are not in a macro economic environment that points towards recession. We’re in one that points towards lower growth. . . “I’m not concerned about banks cutting credit.”
MiCA Regulations to be in Effect by 2023
The controversial MiCA sets out rules to regulate the European crypto ecosystem internationally. It applies to cryptocurrency issuers, exchange platform operators, and wallets. It focuses on stablecoins and how they can make the crypto sphere safer and more stable.
Bruno Le Maire (French Minister of Economy), stated that regulation will end “the crypto Wild West,” in which lack of regulation has allowed for many thefts and frauds by those who use legal loopholes to their crimes.
The EBA has limited time to put together a team of cryptocurrency experts to enforce MiCA. This is especially true since it does not have the same budget that other agencies or crypto companies.
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