Last Updated: 28 July 2022
The European Banking Authority (EBA) is struggling with the regulation of bitcoin (BTC) and ‘crypto.’ Chairman José Manuel Campa does not expect clear guidelines on the tokens he has to supervise until 2025.
The EBA is a European authority with the formal goal of achieving clear and consistent regulation and supervision in the European banking sector. A difficult task at a time when bitcoin is playing a role in the financial world.
The European Banking Authority wants to regulate crypto, but they realized their knowledge on it is basic.
“My concern is about making sure the risk we have identified […] is properly managed", said the chair of the institution, José Manuel Campa. https://t.co/BugsIYeLvr
— Cointelegraph (@Cointelegraph) July 27, 2022
According to Campa, another ‘big problem’ is finding experts: “There is a lot of demand for that at the moment,” he says in conversation with Financial Times.
The European Union as a whole seems to be less affected. They are now putting the finishing touches to the package called Markets in Crypto Assets (MiCA). The aim is to harmonise all regulations in the 27 Member States. In practice, it is likely to vary somewhat from country to country.
Bitcoin is and has been built primarily by volunteers. It attracts people to contribute for several reasons. To attract knowledgeable people to the European Banking Authority, in this case, you need good conditions. It also goes against the whole idea behind bitcoin.
According to Campa, it is very important that they find the right experts: “If we don’t do as well as we should, we will have to live with the consequences.”
Europe and rules
Campa calls this a very ‘dynamic market.’ Developments are happening much faster than the regulators can devise and introduce laws for. Technology and acceptance go a lot faster than the slow roads of Brussels. Campa: “Cryptocurrencies can be used in three years for other things I don’t know yet.”
The EBA is mainly concerned with rules and guidelines for the banking sector. But everywhere in Europe, regulators and enforcers have to get to work.