EU Proposes Centralized Crypto Oversight Under ESMA to Streamline Regulation
The European Commission is moving to consolidate supervision of crypto exchanges and other financial market infrastructures under the European Securities and Markets Authority. This overhaul seeks to eliminate regulatory fragmentation across the bloc's 27 member states while strengthening the capital markets union.
ESMA WOULD assume direct oversight of crypto asset service providers currently regulated under national authorities through MiCA. ECB leaders Lagarde and Draghi have endorsed the plan as critical for Europe's competitiveness against U.S. markets.
"The current system forces 27 national regulators to build duplicate frameworks—an inefficient allocation of resources," said ESMA Chair Verena Ross. The centralized approach promises to reduce compliance costs while creating a more unified digital asset market.
