Cryptocurrency assets are of great interest to banks and service providers. Esma, the European Securities and Markets Authority, budgets over 1 million EUR to keep tabs on this industry. Their focus will be split between crypto-assets and fintech alike. Keeping on top of these trends in financial innovation is not an unnecessary luxury.
Financial innovation will materialize in one way or another. Whether it is through challenger banks or crypto-assets, the market is ripe for innovation and disruption. Esma acknowledges changes are looming on the horizon. By active budgeting for research and monitoring, the agency can explore new opportunities when they arise.
Esma Pays Attention to Innovation
The monitoring of fintech and investor trends is conducted by a full-time staff of six. Esma’s goal is to achieve a coordinated approach to regulatory and supervise treatment of these financial activities. That does not mean cryptocurrency or fintech regulation will be introduced soon, albeit advice will be passed along to the right individuals.
This budget represents a minor portion of Esma‘s 48 million Euro budget. Its biggest spend is budgeting for data management and statistics. Those sectors will continue to play a role of growing importance in the financial sector. Additionally, they will also allow for better research where fintech and crypto-assets are concerned.
All of this shows both fintech and cryptocurrency are in a good place. Although Europe seems to play a role of less importance in both industries, that situation may change fairly soon. The findings of Esma will carry a lot of weight when it comes to potential future regulatory measures.