EU Plans Major Shift in Crypto Regulation Under ESMA

The European Union is preparing a significant overhaul of cryptocurrency supervision, with plans to centralize regulatory authority under the European Securities and Markets Authority (ESMA). This move aims to address inefficiencies in the current system, where 27 national regulators independently enforce the Markets in Crypto-Assets (MiCA) framework.

ESMA Chair Verena Ross emphasized the need for a unified approach, stating that fragmented oversight undermines Europe's competitiveness. "Specific new resources had to be built up 27 times," Ross noted, highlighting redundant efforts across member states. The proposal follows criticism of Malta's crypto licensing process in July 2025, exposing cracks in decentralized enforcement.

Marina Markezic of the European Crypto Initiative warns that divergent interpretations of MiCA could destabilize the regulatory landscape. The shift to ESMA supervision seeks to create a truly integrated capital market, though debates continue among member states about sovereignty versus efficiency.