The head of the European Banking Supervision Service (EBA), Andrea Enriya, recommended regulators to avoid Excessive Regulation of crypto-currencies, as this may inhibit the development of financial innovations. Very soon EBA is going to publish a plan that will determine a number of priorities in this area for a two-year period.

During his speech at the Copenhagen Business School, Henry noted that now we can observe two opposite approaches to the Regulation of the crypto currency. Either the authorities completely restrict this sphere, or they prefer not to interfere and make no effort. The head of the EBA is convinced that there is a need to find balance between these positions. He proposes to implement specific regulatory requirements in accordance with various risks for companies and the financial sector as a whole.

In addition, Enriya is convinced that banks should provide liquidity in crisis situations and provide loans.These functions should be subject to “strengthened regulation and control”, whereas services such as payments and e-money “are not related to the basic functions of banks.”

Due to the fact that this sphere is actively developing, the authorities are obliged to constantly review the rules, while avoiding extremes. According to him, a single regulatory approach would guarantee equal opportunities for organizations throughout the European Union.

EBA plans include the creation of a “knowledge center” and the promotion of a position of technological neutrality in the development of standards.

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