EU Moves to Create Single Crypto Regulator Across All Member States

The European Commission has officially proposed granting the European Securities and Markets Authority (ESMA) direct oversight over major cryptocurrency exchanges, trading platforms, and service providers operating under the MiCA regulation. This move aims to replace the current fragmented system where national regulators issue licenses, which has led to regulatory arbitrage as companies choose jurisdictions with laxer rules, like Malta or Cyprus. Proponents argue that a centralized "European SEC" would enhance consistency, improve EU competitiveness against the US financial markets, and better manage systemic risks, echoing suggestions made by ECB President Christine Lagarde. However, the proposal faces significant pushback from several member states, including Malta, Luxembourg, and Ireland, who fear losing regulatory autonomy and competitive advantage, and from the crypto industry, which warns that centralization could stifle innovation due to slower decision-making and increased bureaucracy. The proposal must still be approved by the European Parliament and the Council of the EU, facing substantial political hurdles.

(Source：Brave New Coin)