Europe reconsiders crypto oversight as ESMA centralization gains momentum

Europe is re-evaluating the enforcement structure for its Markets in Crypto-Assets (MiCA) regulation, which took effect in early 2025, as disparities in licensing and supervision among member states become apparent. Some countries, like Germany, have issued many licenses, while others, like Luxembourg, have issued very few, leading to concerns about regulatory arbitrage. This uneven application has spurred support from countries including France, Austria, and Italy for centralizing supervisory powers under the European Securities and Markets Authority (ESMA), creating a more unified enforcement model. Lewin Boehnke of Crypto Finance Group supports centralization from a practical standpoint, believing it could improve efficiency and reduce delays. While Boehnke praises MiCA's focus on regulating service providers over peer-to-peer activity, he notes that technical ambiguities, such as the requirement for custodians to return client assets "immediately," still need clarification from ESMA to aid adoption, especially for banks.

(Source：Cointelegraph)