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What regulations There have been many changes in cryptocurrency regulation in the past few years, and this is just the beginning. In European countries, MiCa rules change the situation with cryptocurrencies. However, the European Banking Authority is concerned about the lack of specialists in this field to implement this new rule.
It should be noted that the purpose of these rules is make the sector more stable, but also safe for investors. After various events this year, many countries want to tighten their laws related to cryptocurrency management.
A few words about European banking supervision
It is important to know the role European Banking Authority. Its main task is to ensure the viability and safety of the banking and financial system. In Europe, this function has officially existed since 1 January 2011 and replaces the Committee of European Banking Supervisors (CEBS).
The European Banking Authority not only wants to regulate the cryptocurrency sector, but also ensure integrity Transparency, efficiency and proper functioning of financial markets, as well as strengthening international cooperation in the field of supervision, maintaining regulation and supervision of credit risk taking, and even strengthening client protection.
Information on the MiKa project
It is important to know that the MiCa draft regulation is mainly aimed at this. consumer protection. To do this, the European Bank requires issuers of “stablecoins” to create sufficient liquidity to guarantee the stability of these currencies.
In other words, this project aims to create a legal framework for an active crypto market. This context will support innovation and unlock the potential of cryptocurrencies in such a way ensure financial balance in investor protection.
For, MiCa has three modes, including a framework for ICO, a framework for cryptographic services platforms, and a common framework for fixed-value tokens (stablecoins). The first scheme specifically provides for the announcement of a document that will help issuers to issue their tokens in 27 states.
As for the second, it is subject to binding approval use one of the services mentioned in the text. For the latter modality, it deals with two differences. This applies on the one hand to those who improve the e-money regime and, on the other, to those relating to assets.
Banking regulators are concerned about the lack of environmental regulators
Since the foundation Mika project from the European institutions, the industry is enthusiastic. In addition, the president of the European Banking Authority released a statement on the organization’s concerns about how it would operate under its new mandate.
For information: by 2025, the organization will not control all digital assets. This control will take place during the duration of the new European regulations. European Banking Authority president José Manuel Campa publicly confirmed his concerns in an interview. retain talent. This concern mainly concerns the area of technology, cryptocurrencies and digitization.
Before the creation of this project, there was a growing demand in this sector. The ECB’s mission is currently focused on the sector influencing institutions operating in the dynamic cryptocurrency framework. It should be noted that this structure holds and attracts new talent.
In addition, some private companies are looking for expert grants. high salaries to attract these profiles. However, the salary offered by the European Banking Authority is not satisfactory as it does not have the necessary resources.
Kampa added that the dynamic nature of cryptocurrency spaces caused a delay in regulation. He also claimed that cryptocurrencies are the “Wild West”. In this regard, the main concern of the regulator at the moment is to protect the buyers of these cryptocurrencies from possible risks.
Announcement of a market recession by the President of the ECB
José Manuel Campa also spoke about it market recession during his job interview. He also denied the emergence of a crisis and said that European banks can keep credit in the economy.
He also noted that the macroeconomic environment indicates a slowdown in economic growth. Therefore, there is none don’t be afraid of credit cuts European banks. This view is completely different from that of the Bank of England officials. These officials even insisted on “preliminary signs” of banks on hold.
In this regard, the European Banking Authority will study in detail how to manage bank commission at higher interest rates during the 2023 stress test. This is an annual process that provides banks with enough liquidity to overcome any crisis.
The cryptocurrency industry is not alone broad, but also difficult to regulate. However, these laws need to be made available as soon as possible and CSF intends to present them to the G20 later this year to speed up the process.