EU Expands ESMA’s Oversight to Include Crypto Exchanges in Bid for Competitive Capital Markets
The European Union is poised to grant the European Securities and Markets Authority (ESMA) direct supervisory powers over cryptocurrency platforms, stock exchanges, and critical post-trading entities. This move forms part of a broader strategy to create a financial ecosystem that outpaces US and global competitors.
Currently fragmented across national regulators, the new framework WOULD centralize oversight of cross-border market participants. The proposal aims to balance regulatory expertise with fostering innovation, particularly for emerging European businesses seeking integrated capital markets.
The initiative serves as a cornerstone for completing the EU's Capital Markets Union, with draft legislation expected in December. ESMA's expanded mandate would also include arbitration authority over disputes involving large cross-border financial operations.
