EU Eyes Centralized Crypto Watchdog Under ESMA

Citing the need for a “more integrated and globally competitive” financial system, the European Union is moving to centralize its oversight of the cryptocurrency market under the European Securities and Markets Authority (ESMA).

This strategic shift aims to create a more streamlined and powerful supervisory regime that aligns with the MiCA framework.

In an interview with the Financial Times, ESMA Chair Verena Ross revealed that the European Commission is crafting a plan to transfer authority from national regulators to ESMA. The goal is to overcome the “continued fragmentation” of the current system, where licensing is managed by individual member states.

This has led to a situation where smaller nations like Malta and Lithuania have been at the forefront of regulating major international exchanges like Crypto.com and OKX.