The Chairman of the European Banking Authority has spoken against excessive regulation of the crypto sector, warning it might constrain financial innovation. Outlining EBA’s position in regards to the supervision of the Fintech industry, Andrea Enria said regulators need to maintain a “measured approach”. Next week EBA will publish a roadmap, which defines a series of priorities for a period of two years.
Speaking at the Copenhagen Business School on Friday, the head of EBA said he was not convinced cryptocurrencies should be placed under the regulations that apply to the traditional financial system. Several central banks have argued that cryptocurrencies lack the institutional backup and cannot fulfil the functions of money – unit of account, means of exchange and reserve of value, Andrea Enria said, admitting that crypto fluctuations seem to confirm this view.