The European Commission (EC) is actively pushing for a major regulatory overhaul of the bloc’s digital asset supervision, proposing to grant its markets regulator, the European Securities and Markets Authority (ESMA), new, centralized powers. The EC is preparing a reform that would make ESMA the sole direct regulator responsible for authorizing and monitoring all crypto-asset service providers (CASPs) operating across the entire bloc. This proposed shift comes just as the landmark Markets in Crypto-Assets (MiCA) Regulation is entering its final stages of implementation, creating uncertainty in the industry.
The current MiCA framework allows crypto firms to obtain authorization in just one member state, which then grants them a “passport” to operate across the entire EU. The EC argues that centralizing oversight under ESMA is necessary because crypto markets move fast, operate globally, and do not fit neatly within national borders, making policing by 27 different national regulators inefficient. The proposal aims to unify standards, reduce regulatory fragmentation, and prevent loopholes.
This centralizing push is already supported by key members like France and Italy but has sparked controversy among other member states and industry groups. Critics warn that reopening MiCA now risks slowing down the licensing process and causing confusion for businesses already preparing for compliance. If approved by the European Parliament and the Council of Member States, this move would significantly impact DeFi protocols, token issuance, and cross-border platforms by imposing a higher, single layer of regulatory scrutiny.
 is actively pushing for a major regulatory overhaul of the bloc's digital asset supervision, proposing to grant its markets regulator, the European Securities and Markets Authority (ESMA), new, centralized powers.){kind=link}