European Commission Set to Hand Full Crypto Oversight to ESMA
The European Commission is drafting a reform that would centralize crypto regulation under the European Securities and Markets Authority (ESMA). This move would shift licensing and supervision of crypto-asset service providers from individual EU member states to a single regulatory body.
Currently, firms operate under the Markets in Crypto-Assets (MiCA) framework, which allows them to secure approval in one member state and serve the entire bloc. The proposed change aims to address the borderless nature of crypto markets, though critics warn it could disrupt ongoing MiCA implementation.
Industry groups express concern about regulatory instability. Robert Kopitsch of Blockchain for Europe cautioned against overhauling the system mid-implementation, suggesting it may create confusion for market participants.
