He warned the EU's framework placed banks' activity as a 'crypto-asset service provider' -- such as acting as a custodian for customer wallets, exchanging tokens or managing crypto portfolios -- outside of the ECB's purview as a banking supervisor.
"In fact, if crypto-asset service providers controlled by banks are not within the scope of their prudential consolidation, the BCBS standard and especially the exposure limit may become ineffective."
He added crypto asset service providers should be added "as a matter of urgency" to the list of financial institutions that the ECB supervises under EU rules.
MiCAR entered into force at the end of June and will take full effect by the end of next year.
The Basel Committee's global standards on exposures to crypto assets are due to be transposed into EU law by Jan. 1, 2025.
Persons:
Dado Ruvic, Andrea Enria, Enria, MiCAR, Jan, Claudia Buch, Francesco Canepa, Susan Fenton
Organizations:
REUTERS, Rights, Central Bank's, Banking, ECB, prudential, EU, Thomson
Locations:
EU, Venice, Basel