Malta Resists EU Push for Centralized Crypto Oversight Under MiCA

Malta's financial regulator has openly opposed efforts by France, Italy, and Austria to grant the European Securities and Markets Authority (ESMA) direct supervisory powers over cryptocurrency firms. The move highlights growing divisions among EU member states on implementing the Markets in Crypto-Assets (MiCA) framework.

While the trio of nations argues centralized oversight would prevent inconsistent interpretation of MiCA rules, Malta's Financial Services Authority warns added bureaucracy could stifle efficiency. "We support coordination, not centralization," the MFSA stated, emphasizing Europe's need for competitive agility in crypto markets.

ESMA Chair Verena Ross acknowledged the regulatory rift as France threatened to challenge crypto licenses issued by other EU states if standards appear uneven. The conflict emerges as MiCA's passporting system—allowing cross-border license recognition—faces its first stress test of European unity in digital asset regulation.