Centralizing Crypto: Why Malta Says ESMA Goes Too Far

The debate over crypto regulation in Europe has shifted from *if* to regulate, to *who* should regulate. While France, Austria, and Italy advocate for centralized supervision by the European Securities and Markets Authority (ESMA), Malta’s Financial Services Authority (MFSA) believes it’s too early to make such changes, citing the recent implementation of the Markets in Crypto Assets (MiCA) regulation and the need to assess its impact. Malta argues that the current system allows for market integration and investor protection, and that centralization isn’t about jurisdictional concerns but about the structure itself. Concerns center around potential fragmentation of accountability, especially considering the integrated oversight required by the Digital Operational Resilience Act (DORA). Malta suggests strengthening peer reviews and enforcing consequences for non-compliance as alternatives to a complete overhaul of the regulatory framework, emphasizing the importance of maintaining supervisory depth and expertise within national authorities to avoid driving crypto firms offshore.

(Source：Cointelegraph)