The European Central Bank has voiced support for a European Commission proposal to shift supervision of systemically important crypto firms to the EU’s market regulator, the European Securities and Markets Authority (ESMA).
In an opinion released Friday, the ECB said it “fully supports” moving oversight of cross-border capital market firms with systemic importance — including large trading platforms and crypto-asset service providers (CASPs) — from national authorities to ESMA. The bank described the move as an ambitious step toward deeper integration of capital markets and harmonised financial supervision across the Union. Although the ECB’s view is nonbinding, it is expected to give the proposal significant momentum.
If adopted, the change would be the most substantial shift in EU crypto oversight since the rollout of the Markets in Crypto-Assets (MiCA) regime. Under MiCA, CASPs can operate across the EU under national authorisations, while ESMA issues standards and guidance. That patchwork approach has let firms pick favourable licensing hubs: Kraken’s EU arm in Ireland; Coinbase and Bitstamp in Luxembourg; Bitpanda in Austria, with its asset management arm choosing Germany. Some member states, notably Malta, have urged caution, arguing centralised supervision is premature given that certain MiCA rules only came into force recently.
The ECB argues that moving authorisation, monitoring and enforcement for significant CASPs to ESMA would promote supervisory convergence, reduce fragmentation and limit cross-border risks — bolstering financial stability and protecting the single market. It pointed to growing links between banks and crypto firms, either through banks offering crypto services or by providing banking relationships to crypto companies, which could transmit shocks from the crypto sector into the broader financial system.
The ECB also warned that ESMA will need adequate funding and staff to perform direct supervision of major crypto firms. The proposal still faces months of negotiations among EU governments and legislators before it could become law, with further debate in the European Parliament to follow.
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