There needs to be more dialogue between the crypto industry and supervisors, consumer education, “rigorous compliance,” and even a “mind shift” for some crypto firms in order to create a “responsible” crypto industry, according to José Manuel Campa, chairman of the European Banking Authority (EBA).
According to the EBA chairperson, the European Parliament and Council have concluded their negotiations on the European Commission’s proposed regulation governing markets in crypto assets.
It is expected that MiCa will enter into force in 2023. Campa called it a “ground-breaking legislation” that regulates crypto, including stablecoins, and crypto assets services, including custody and exchange.
How to foster a responsible sector
As Campa pointed out, in order to foster a climate where “responsible crypto assets products and services can emerge at scale,” industry and supervisors should engage in initiatives that foster:
- Preemptive understanding of opportunities and risks,
- Understanding the expectations of supervisors.
EBA to play its part
Meanwhile, according to MiCa, the EBA has established a new supervision system for “the largest asset-referenced and e-money tokens.”
According to Campa, the EBA will play a role in facilitating responsible use of cryptoasset applications in the EU, adding that the regulator will begin delivering “the extensive number of technical standards and guidelines mandates” under MiCA and the Transfer of Funds Regulation next year (TFR).