The European Central Bank has backed a proposal to shift oversight of major crypto firms to the European Securities and Markets Authority, marking a potential overhaul of EU crypto regulation.
The plan, put forward by the European Commission, would centralise supervision of large cross-border crypto companies, replacing the current system where firms are regulated by individual member states.
The ECB said:
“The proposals constitute an ambitious step towards deeper integration of capital markets and financial market supervision within the Union.”
Under the existing Markets in Crypto-Assets framework, crypto-asset service providers can operate across the EU under a single national licence, allowing firms such as Kraken, Coinbase and Bitstamp to choose favourable jurisdictions.
The proposed shift to ESMA would aim to reduce regulatory fragmentation, limit jurisdiction shopping, and better manage systemic risks as crypto firms grow and integrate with traditional banking services.
Some member states, including Malta, have opposed the move, arguing it is premature given MiCA rules only fully came into force in late 2024.
The proposal remains nonbinding for now and will require further negotiation among EU lawmakers before any changes are formally adopted.