EU Proposes Centralized Crypto Oversight Under ESMA
- The European Commission aims to transfer cryptocurrency oversight from individual countries to the European Securities and Markets Authority (ESMA).
- This proposal addresses regulatory discrepancies among the EU’s 27 member states, aiming for a unified approach.
- Concerns were raised by national regulators, including France’s AMF and Italy’s Consob, regarding the effectiveness of current oversight under the Markets in Crypto-Asset (MiCA) regulation.
- The proposed changes require negotiation and approval from both the European Parliament and European Council.
- The Commission noted that fragmented financial markets hinder competitiveness and efficiency in the EU.
By centralizing crypto oversight under ESMA, the EU seeks to enhance market integration and address regulatory inconsistencies across member states. This move follows calls for tighter control of MiCA by various national regulators.
If approved, this initiative could lead to more effective regulation of cryptocurrencies within the EU, addressing concerns highlighted by regulators in September about existing supervisory challenges.(Source)
