The European Union has been making efforts to regulate the crypto market, which is growing rapidly, and requires oversight.
However, the banking regulator in Europe is concerned that they would not be able to find the specialized personnel they need for this purpose.
The digital assets that have to be supervised do not have a lot of clarity, which means that finding employees to assist in the process would be incredibly difficult.
Talent retention difficult
According to the head of the European Banking Authority (EBA), it is a big concern to be able to retain talent for anything that is crypto related.
This lack of professionals is also applicable to other areas, such as digitization and technology, as there is a high demand for these individuals throughout society.
The EBA is based in Paris and it had been founded back in 2011, once the last financial crisis was over. The purpose of the authority was to ensure that European banks have enough capital to meet similar challenges in the future.
In recent times, the EBA has been entrusted with the responsibility of helping Europe regulate its crypto market. The authority recently said that it was having trouble with making plans for its new powers.
A draft regulatory framework was recently agreed upon by European institutions, which has been titled MiCA i.e. Markets in Crypto Assets.
However, the authority said that it would not know which are digital coins and stablecoins and which cryptocurrencies are used for payment.
It is expected to supervise all of these until the MiCA legislation comes into effect, which will not happen until 2025.
The comments from the chairman of the EBA, Jose Manuel Campa highlight the difficulties that a number of organizations are facing in their race to catch up with the rapidly developing crypto space.
Demand for crypto professionals
Fintech companies, banking institutions, and consultancies are offering lucrative packages to attract crypto professionals who are in high demand due to their skills.
The report also noted that the demand for wages has also gone up because of the rise in inflation.
Campa said that the salaries that the EBA pays are aligned with that of the European Commission and they cannot make adjustments to them.
He is also concerned that regulation could fall behind because the crypto space is a dynamic one, so they are unsure of exactly what they would have to deal with in two years.
According to the top EBA officials, he is not worried about the risk to its reputation if the authority were to make mistakes in its oversight of the crypto industry.
He said that their primary concern was to ensure that the risks they do manage to identify are managed properly.
He said that if they do not do things right, then they would have to deal with the consequences, something they wish to avoid.
In the meantime, crypto companies are laying off their crypto staff because of the downturn in the market.