The European Banking Authority (EBA) has announced that it is looking for a digital currency expert to join its team. The position will support the EBA’s supervisory functions under the Markets in Crypto Assets (MiCA) law, a new regulatory regime for the digital asset industry set to be implemented by the European Union.
The successful candidate will contribute to the development of the EBA’s supervision model for the EU’s digital currency markets, as well as support and contribute to the other activities of the Digital Finance Unit. Specifically, the role will involve developing policy mandates under MiCA and monitoring the operations of stablecoins pegged to the euro to ensure that their reserves are properly backed. The EBA will also draft additional rules that the EU’s parliament left blank to allow regulators to maintain control over the industry.
In order to achieve its goals, the EBA is looking for an individual with sufficient expertise in digital assets and their underlying technology. The ideal candidate should have a sound knowledge of crypto asset products and services and the regulatory framework related to the area of crypto assets, in particular with a high familiarity of crypto asset issuance activities and business models, and the use of distributed ledger technology (DLT) gained through studies or professional experience.
Alongside technical competencies, the EBA is paying close attention to candidates’ behavioral competencies, with problem-solving and collaboration at the top of the list.
The EBA’s role is expected to be a “temporary agent contract” that will run for three years with the option for an extension of an additional three years. The MiCA law is currently awaiting a final vote by Members of the European Parliament on 19th April after bottlenecks with translations.
Once MiCA is implemented, digital currency firms will be subject to a groundbreaking regulatory regime. A provision of MiCA requires digital asset providers to obtain comprehensive insurance, which some firms have found challenging to fulfil.
“The real challenge is to find a bank and insurance. And that’s really disappointing. You pass all the steps, you have your license, and the market still says no. I would like to imagine that with MiCA, that will change,” said Frederic Montagnon, CEO of French digital currency firm Arianee.
MiCA is part of a broader push for regulation in the digital asset industry globally. Countries such as the US and UK are also looking at implementing new regulatory frameworks. These regulations aim to offer more protection to consumers whilst still allowing for innovation in the industry.
In a similar move to the EBA seeking a digital currency expert, the UK’s Financial Conduct Authority (FCA) announced a similar role in November of last year. The FCA is looking for a head of cryptocurrency to lead its work regulating cryptocurrency firms in the UK, including the implementation of the fifth Money Laundering Directive, which will bring cryptocurrency firms under its supervision.
With governments and regulators increasingly focusing on digital assets, the role of experts such as those being sought by the EBA and FCA is likely to become more important in shaping the future of the digital asset industry. The EBA is an independent EU authority that works to ensure effective and consistent prudential regulation and supervision across the European banking sector.
