EU plans to transfer crypto-surveillance power – ESMA President

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The EU (EU) reportedly plans to transfer oversight in major financial market areas, including cryptocurrencies, from national authorities to centralized oversight authorities to help promote the group’s capital market and coordinate supervision.

Concentrated crypto market supervision in the eyes of the EU

On Monday, European Securities and Markets Authority (ESMA) president Verena Ross confirmed that regulations on EU stock exchanges, crypto companies and clearing houses could be transferred to Bloc’s market regulator.

Ross told the Financial Times that the European Commission is preparing new rules that will shift supervision in several regions of the EU’s financial markets from national authorities to ESMA to promote “Europe is more integrated and globally competitive in Europe”.

Last month, EU Financial Services Commissioner Maria Luís Albuquerque shared a proposal that “is considering the transfer of oversight to ESMA to acquire the most important cross-border entities, including cryptocurrency companies.”

“All of this means that the governance and decision-making process of ESMA will change, and we have various models that can be considered based on other existing centralized supervision models,” Albuquerque said.

The ESMA chair said the change was designed to address the ongoing division in the market to “create a single market for more European capital”, saying: “While we are working to ensure the implementation of mica, it is clear that we and the national supervisors have put in a lot of effort to achieve this.”

She added: “It also means that people have to build 27 times the specific new resources and expertise in different national supervisors, which would have been a more effective approach at the European level.”

Single supervisor proposal faces rebound

It is worth noting that the EU first proposed to make ESMA the main supervisory body (CASP) that provides cryptoasset service providers (CASPs) during the development of the cryptoasset management regulations (MICA).

The plan has been bounced back by smaller EU countries such as Luxembourg, Ireland and Malta, which criticized the ability of supervisors to oversee the fast-growing cryptocurrency market and feared it could undermine its thriving financial sector.

As a result, the oversight of these markets remained in the hands of authorities in 27 countries, which Ross believes is causing inefficiency. She explained that the Paris-based institution “has tried for a while in initiatives to build more effective capital markets for capital markets unions and other initiatives,” but “the reality is that given that we have a very different market structure, it’s not easy.”

In July, ESMA raised concerns about the process of Malta approving pan-EU licenses for crypto companies and argued that “certain areas of risk are not fully evaluated in the licensing process”.

According to Bitcoiner, the Peer Review Board (PRC) of the BLOC regulator reviewed the Malta Financial Services Agency (MFSA) CASP authorization process and found that national regulators only “partially meet expectations” despite adequate staffing and technical infrastructure.

At the time, ESMA stressed that these issues were extended beyond Malta and urged all effective EU authorities to maintain a monitoring mechanism to ensure consistency under the MICA regulatory regime.

Last year, former European Central Bank president Mario Draghi turned ESMA into a single co-regulator of all group securities markets similar to the Securities and Exchange Commission (SEC) (SEC), as a “key pillar” to promote European capital markets.

Since then, European supervisory bodies have gained greater power. Regulators will provide new providers of consolidated tapes at stock and bond prices, as well as agencies that provide environmental, social and governance ratings starting in 2026.

However, Claude Marx, director-general of the Luxembourg financial regulator, believes that a financial regulator will become a “monster”. “It’s a fantasy to push a supervisor,” Marx said in June.

“The European Commission has been saying that they have not Fixed idea He said: “Have a European SEC.

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