- ECB supports shifting oversight of major crypto firms to ESMA to strengthen EU-wide supervision.
- The proposal would move authority away from national regulators, marking a major post-MiCA change.
- Central bank warns ESMA needs more resources and calls for a phased transition approach.
The European Central Bank has supported a European Commission proposal to centralise oversight of major crypto firms under the European Securities and Markets Authority (ESMA), signalling a shift towards unified supervision across the EU.
The plan would see ESMA take direct responsibility for supervising large, cross-border crypto-asset service providers and other key financial institutions. The ECB characterised the proposal as a significant step towards integrating capital markets within the bloc.
This reform would represent the most substantial change to EU crypto oversight since the Markets in Crypto-Assets (MiCA) framework came into force in late 2024. At present, national regulators serve as primary supervisors, while ESMA coordinates their activities, but the new approach would centralise authority at the EU level.
The ECB emphasised that the increasing importance of large crypto firms in financial markets makes a unified supervisory model necessary to maintain stability.
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The current system has produced disparities, with firms obtaining licences through specific member states, leading to uneven regulatory standards. A centralised framework is intended to address these gaps and reduce fragmentation across EU financial markets.
While endorsing the proposal, the ECB stressed that ESMA would need additional resources and staffing to fulfil its expanded role effectively. It also recommended a phased transition from national regulators to ensure continuity and minimise disruption. The proposal is now set to undergo negotiations between EU member states and the European Parliament before it can be finalised.
Related: Polish President Vetoes MiCA Bill Again, Casting Doubt on Crypto Oversight Timeline
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