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The European Commission (EC) is advancing plans to transfer regulatory oversight of cryptocurrency firms, stock exchanges, and clearing houses from national authorities to the European Securities and Markets Authority (ESMA), in a move aimed at strengthening market integration and competitiveness across the European Union.
ESMA Chair Verena Ross said the proposed shift seeks to create “a more integrated and globally competitive capital market in Europe” while addressing persistent fragmentation in financial supervision across member states.
For the crypto industry, the proposed changes would align with the Markets in Crypto-Assets (MiCA) framework, which currently allows national regulators to issue licenses for crypto-asset service providers. ESMA’s direct oversight would streamline the system and ensure uniform enforcement across the EU.
Earlier this year, ESMA raised concerns about Malta’s approach to approving pan-European crypto licenses, highlighting inconsistencies in supervision that could undermine investor protection and regulatory confidence.
Ross noted that implementing MiCA has required significant coordination and resource investment across Europe’s 27 national regulators — an effort that could be more efficiently managed under a single authority.
“While we are doing a lot of work to align MiCA implementation, it clearly takes a lot of effort from both ESMA and national supervisors,” Ross said. “It also means that expertise and resources had to be built up 27 times over, instead of once at a European level.”
The proposed centralisation would give ESMA direct supervisory powers over major financial market infrastructures and crypto service providers, marking a major step toward a unified European capital market.
However, the initiative has met resistance from smaller EU countries with large financial services sectors, including Malta, Ireland, and Luxembourg, which fear losing regulatory influence and competitiveness under a single pan-European regime.
Despite the pushback, EU officials argue that consolidating authority within ESMA will enhance oversight consistency, reduce regulatory arbitrage, and strengthen investor protection, particularly as Europe navigates the evolving landscape of digital assets and cross-border finance.
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