EU Plans to Give Single Regulator Control Over All Crypto Exchanges

The European Commission intends to propose transferring the supervision of crypto platforms from individual national regulators to the European Securities and Markets Authority (ESMA), creating a centralized EU-wide authority modeled after the US SEC. This proposal, part of a "Market Integration Package," is expected in December 2025, with potential implementation by late 2026. The move is driven by inconsistencies and inefficiencies arising from 27 separate national regulators enforcing the MiCA regulation, exemplified by ESMA's criticism of Malta's approval process. Supporters, including ECB President Christine Lagarde and France, argue centralization will mitigate systemic risks and ensure consistent enforcement. However, financial centers like Luxembourg and Malta strongly oppose the plan, fearing increased bureaucracy, reduced competitiveness, and higher compliance costs for the industry. Under the proposal, ESMA would directly oversee the largest cross-border entities, while smaller firms remain under local supervision. The plan faces significant political hurdles due to opposition from several member states and industry concerns about readiness and cost.

(Source：Brave New Coin)