The European Securities and Markets Authority (ESMA) is set to receive expanded supervisory powers under a proposed European Union (EU) plan to centralize the oversight of crypto and blockchain firms across all member states. This initiative, proposed by the European Commission (EC), seeks to ensure consistent, harmonized, and more efficient enforcement of the bloc’s digital asset regulations.
This centralization effort is being driven by the recognition that the current regulatory landscape, particularly under the Markets in Crypto-Assets (MiCA) Regulation, still relies heavily on individual national regulators. Since crypto firms operate globally and markets move at high speeds, the EC argues that oversight by 27 separate national authorities is inefficient and creates avenues for regulatory arbitrage. Granting ESMA direct authority to authorize and supervise major crypto-asset service providers (CASPs) would address this fragmentation.The consolidation of power under ESMA would fundamentally change how blockchain companies operate in Europe, potentially increasing compliance burdens but also offering the benefit of a single regulatory point of contact. This shift is crucial for mitigating risks associated with systemic failure and market manipulation in the fast-growing digital finance sector.
 is set to receive expanded supervisory powers under a proposed European Union (EU) plan to centralize the oversight of crypto and blockchain firms across all member states.){kind=link}