Europe’s banking sector regulator is worried it won’t manage to find the specialized personnel needed for the oversight of the EU’s attempt to regulate the crypto market. The authority is also concerned over the lack of clarity regarding which digital assets it’s supposed to supervise.
Bank Watchdog faces staffing problems that threaten its ability to regulate crypto in the 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. According to the Financial Times, this deficit also applies in other areas, such as technology and digitization. There is a high demand for experts across the society.
In Paris, the EBA was founded in 2011 after the previous financial crisis. Its purpose is to help European banks overcome future similar problems. More recently, it was also tasked to oversee Europe’s bid to regulate cryptocurrencies. It now says it’s also worried about planning for its new powers.
European institutions have recently reached an agreement on a regulatory draft called Markets in Crypto Assets. But the authority won’t know which digital coins, cryptocurrencies used for payments, and stablecoins it has the authority to supervise until close to 2025, when the legislation is expected to come into force, its head indicated.
José Manuel Campa’s comments underscore the difficulties faced by many other organizations trying to catch up with the fast-moving crypto sector. To attract highly-skilled professionals, banks and fintech companies have offered extensive package deals. The report also notes that record inflation in the eurozone has driven up wage demand.
Campa acknowledged that the salaries at the authority align with the European Commission’s and EBA’s. He will have to make adjustments. He is also worried that due to the dynamic nature of the crypto sector, regulation may lag behind so he doesn’t know what exactly his agency will be confronted with in two years’ time.
According to the EBA’s top official, he wasn’t concerned about reputational risks if the authorities make errors in supervising the sector. “My concern is more about making sure the risk we have identified is properly managed. If we don’t do as well as we should have, we’ll have to live with the consequences,” he elaborated.
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