Major regulators responsible for overseeing breakthrough bids in Europe that regulate cryptocurrencies see the ability to hire professional staff as a “major concern” and are concerned about the ability of authorities to oversee the digital asset market. Is emphasized.
Jose Manuel Campa, Chair European Banking AuthorityHe said he was also worried about the logistics of the new power plan because he didn’t know the digital coins he had the authority to oversee until nearly 2025, when a radical new cryptocurrency regulation in Europe would come into force. I did.
In an interview, Kampa said that retaining talent was already a “major concern.” .. ..Especially in the field of technology, anything related to encryption and digitization [or artificial intelligence].. This is in high demand throughout society. ”
The Paris-based EBA was established in the aftermath of the financial crisis to secure enough capital for European banks to survive future storms and is a widely used “important” payment method. It is responsible for overseeing tokens and popular tokens linked to traditional banks. Under the European proposed market for assets, crypto asset regulation (Mica).
Regulatory comments highlight the challenges faced by other authorities seeking to capture the fast-moving digital asset sector.
Banks, fintech and consultancy have offered luxury packages to attract the most sought after professionals. Record inflation across the euro area is also driving wage demand as employees seek packages to offset rising living costs.
Key intelligence about the digital asset industry. Check FT coverage here..
The EBA’s salary is consistent with the European Commission’s salary, and Mr. Kampa said giving regulators freehand payments was “not within the scope of possible debate” between the EBA and the Commission. I did.
Kampa also said the EBA is concerned that, unlike bank supervision, the set of institutions that must be supervised is undefined and subject to last-minute changes. “So I don’t know exactly what I’ll face in two years,” he said.
He, Cryptographic sector This means that regulations “naturally tend to be out of date.” Campa acknowledged that within three years cryptocurrencies could have “changed by moving to other uses that I couldn’t anticipate.”
Still, Mr. Kampa said he wasn’t concerned about the reputational risk if the EBA misunderstood it in a sector that Gary Gensler, head of the US Securities and Exchange Commission, called the “wild west” of finance. ..
“My concern is to identify the risks we have identified. [in the crypto market] It is properly managed. If you don’t do what you should be, you have to endure the consequences, “he said.
EBA bosses are optimistic about the risks to the traditional financial sector due to Europe’s darkening economic outlook, there will be no “immediate” financial crisis, and European banks should be able to maintain lending to the economy. I emphasized that.
“We are not macros [economic] We are in an environment that points to a recession, a macro environment that points to slowing growth. .. ..I’m not worried about banks actually cutting credit, “he said. I saw “provisional signs” Of the bank to pull back.
EBA will try to handle its exposure to rising bank interest rates in next year’s stress test. This is usually an annual exercise designed to ensure that the pockets are deep enough to survive the crisis that banks may face. The European Systemic Risk Board, which monitors risks to the European financial system, is in the “very early stage” of setting up macroeconomic scenarios in which banks are tested.