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MiCA currently lets companies gain cross-border access via a single national licence. National regulators and firms fear a loss of control and added bureaucracy. France, Austria and Italy have backed ESMA’s expanded role for large firms. The European Commission is preparing to give the European Securities and Markets Authority sweeping powers over the crypto sector. If approved, ESMA would become the sole body responsible for supervising all crypto asset service providers in the European Union, reported Bloomberg. The proposal marks a significant change to how the bloc regulates digital assets, placing oversight in the hands of a central authority rather than relying on 27 national regulators. This draft plan, expected to be announced next month, comes just months before the full implementation of the Markets in Cryptoassets Regulation. MiCA, passed in 2023, is set to become the EU’s flagship framework for crypto regulation. Under MiCA, companies currently only need a licence in one member state to operate across the bloc. This structure has been the result of years of work by both regulators and firms. MiCA faces uncertainty MiCA was designed to provide legal clarity and consistency across the EU. It allows firms to gain authorisation in a single country and use that to offer services in other EU states. This system is known as passporting. The goal was to reduce fragmentation and streamline operations for businesses. But the Commission’s new plan would override this process by giving ESMA direct responsibility for approving and monitoring all providers, regardless of where they are based. The draft proposal suggests ESMA could delegate tasks back to national authorities when needed. However, the central point of contact would still be ESMA. This change has raised concerns from those involved in the rollout of MiCA. With the implementation window closing in 2024, firms and local…

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Filed under: News - @ November 15, 2025 12:28 pm