EU Watchdog Pushes to Regulate Crypto, Clearinghouses, and Exchanges

The European Securities and Markets Authority (ESMA) is pushing for expanded regulatory authority over crypto platforms, clearinghouses, and exchanges across the EU. Chair Verena Ross argues that centralizing supervision will enhance market efficiency and bolster the bloc's global competitiveness. The proposal faces opposition from Luxembourg and Malta, both wary of ceding control over their financial hubs.

ESMA has openly criticized Malta's crypto licensing framework, citing gaps in risk assessment protocols. The watchdog's bid for greater oversight aligns with broader EU reforms aimed at streamlining supervision of cross-border institutions, including crypto firms. Fragmented national oversight, Ross contends, creates redundancies and dilutes regulatory effectiveness.