EU Proposes Centralizing Crypto Asset Regulation Under ESMA

As reported by PANews, the European Commission is proposing to grant the European Securities and Markets Authority (ESMA) direct oversight and licensing powers for crypto asset service providers across the EU, with the option to delegate to national regulators when appropriate. The current Markets in Crypto-Assets (MiCA) framework allows firms to operate across borders after approval in one member state, with the implementation window set to close next year. The proposal still requires approval from the European Parliament and the Council of Member States. Earlier, regulators from France, Austria, and Italy called for ESMA to directly supervise major crypto firms; ESMA Chair Verena Ross stated that centralized regulation could be more efficient. ESMA previously criticized Malta's regulatory process. Last month, it was also reported that the EU plans to give ESMA greater authority to oversee both crypto and stock markets.