ECB Backs Plan for ESMA to Take Over Crypto Supervision

The European Central Bank (ECB) has endorsed a European Commission proposal to shift the supervision of major crypto companies and large capital market firms to the European Securities and Markets Authority (ESMA). The ECB argues that centralized oversight will reduce fragmentation, ensure supervisory consistency, and mitigate systemic risks that could potentially impact the broader banking sector. While the proposal aims to strengthen the regulatory framework established by the Markets in Crypto-Assets (MiCA) laws, it faces resistance from some member states who argue the move is premature. The ECB emphasizes that for this transition to be effective, ESMA will require adequate funding and personnel, though the plan still requires extensive negotiation before becoming law.

(Source：Cointelegraph)