EU Moves to Place Crypto Regulation Under ESMA for Unified Control
Brussels pushes for centralized crypto control under ESMA
The European Union is planning to hand sweeping powers over cryptocurrency regulation to its top markets watchdog, the European Securities and Markets Authority (ESMA), in a move that could reshape how digital assets are supervised across the bloc.
ESMA chair Verena Ross confirmed that the European Commission is preparing a proposal to shift oversight of crypto exchanges and service providers away from national regulators and into ESMA’s hands. The reform, she said, would help eliminate market fragmentation and strengthen Europe’s competitiveness under the newly implemented Markets in Crypto-Assets (MiCA) law.
Currently, crypto companies must secure licenses from national regulators in each EU member state. This has led to uneven standards and slow rollout — with smaller nations like Lithuania, Malta, and Luxembourg taking the lead. Lithuania recently approved Robinhood Europe, while Malta licensed OKX and Crypto.com, and Luxembourg authorized Bitstamp and Coinbase.
Ross argued that this country-by-country model wastes resources and leads to regulatory inconsistency. ESMA’s July review already criticized Malta’s licensing process, citing gaps in compliance and oversight.
MiCA, which took effect in June 2024, was meant to unify crypto rules across all 27 EU states. But tensions are growing over its “passporting” system — allowing a firm licensed in one country to operate freely across the bloc. Critics say this system is now being challenged by countries like France, which is reportedly considering restrictions on foreign-licensed crypto companies operating domestically.
Industry leaders warn that such moves threaten MiCA’s purpose. Marina Markezic of the European Crypto Initiative said having 27 separate regulators “supervising the same rules” risks undermining Europe’s promise of a single digital market.
