EU Moves Toward Unified Crypto Oversight Under New MiCA Framework

The European Union is tightening its grip on cryptocurrency markets through the Markets in Crypto-Assets (MiCA) framework, aiming to harmonize regulations across all member states. The European Securities and Markets Authority (ESMA) is poised to take a central role in cross-border supervision, addressing inefficiencies caused by fragmented national oversight.

Consumer protection remains a key concern, with the European Supervisory Authorities (ESAs) warning investors about the risks of crypto-assets. MiCA's licensing system for exchanges and custodians, currently managed by national regulators, has led to duplicated efforts and inconsistent standards. ESMA argues that centralized oversight WOULD strengthen enforcement and reduce regulatory delays.

The European Commission is evaluating a formal plan to expand ESMA's powers, signaling a shift toward greater regulatory consolidation. This move could reshape the compliance landscape for crypto businesses operating in the EU.