ECB backs EU plan to centralize crypto supervision under Paris-based ESMA watchdog: Reuters

The European Central Bank (ECB) has formally endorsed the European Commission's plan to centralize the supervision of significant cross-border financial entities, including large crypto asset service providers, under the European Securities and Markets Authority (ESMA). Currently, national regulators oversee these firms, but the proposed change aims to harmonize oversight, prevent financial systemic risks, and mitigate market fragmentation. While the ECB supports the move, it emphasizes that ESMA will require additional resources and suggests a gradual transition to avoid operational disruptions. The proposal faces political resistance from member states like Ireland, Luxembourg, and Malta, which currently serve as major licensing hubs for crypto firms.

(Source：The Block)