The Chairperson of European Banking Authority, Andrea Enria, has recently found an effective solution for Cryptos. He tells that it would be easier to stop banks and other financial firms from holding and selling cryptos than finding an uniformed decision on regulating the virtual coins directly.
Mr Chairperson’s comment has come after the series of attempt to increase Crypto regulation in Europe. The European Commission had published it’s own ‘Action Plan’ on March 8 to settle down on a particular structure for Fintech and other Blockchain technologies. However, the Governor of Bank of England said, that Cryptocurrencies needs to have regulations and not forcefully imposed bans.
Enria has said that he supports the idea of withholding the regulations from Fintech firms if they do not function with banks, credit, debit and of course, liquidity.
“An excessive extension of the regulatory perimeter.. for fintech firms is likely to be a sub-optimal solution. It would risk excessively constraining financial innovation, as the compliance burden placed on banks is not sustainable for small innovative start-ups“, said Enria.
However he strongly believes that European Commission should only allow the legally undeclared banks to do the taking and lending, under strict and constant supervision. He added, saying that regulations of fintech has to operate so that the European firms are competent enough to be in the market race.
In the February of 2018, a public statement was made available in public that virtual currencies were potential risks and the common people should be protected from it. The authorities to decide and take this stance were the European Supervisory Authorities, composed of the EBA, the European Securities and Markets Authority, and the European Insurance and Occupational Pensions Authority.