The post Crypto News: Europe Pushes Centralized Oversight for Crypto Providers appeared on BitcoinEthereumNews.com.

ECB backs EU plan to centralize crypto oversight under ESMA, aiming to reduce fragmentation and strengthen market integration. The European Union is moving toward stronger and more unified crypto regulation. A significant proposal has been backed by the European Central Bank. This proposal is intended to consolidate the regulation of crypto providers and financial institutions. Thus, the relocation is an indication of a shift towards greater control in EU markets. ECB Supports EU Plan for Centralized Crypto Supervision The proposal was introduced by the European Commission. It proposes the transfer of oversight of key financial actors to one body. This includes crypto-asset service providers, also known as CASPs. Thus, multinational companies will be subjected to a single supervision. Related Reading: Europe Eyes Ethereum for Euro Stablecoin Layer The supervision will be transferred to the European Securities and Markets Authority under the plan. This organization, based in Paris, will regulate important market players. These are trading systems, clearing systems, and depositories. Consequently, the EU tries to minimize discrepancies among national regulators. Furthermore, this proposal was completely supported by the ECB in its April 9 opinion. It termed the plan as a significant move towards greater financial integration. Thus, the EU is hoping to create more competitive and robust capital markets. This initiative also fits into the larger economic objectives. In addition, the ECB stressed the need for proper funding for ESMA. It said that increased responsibilities must be adequately resourced. Thus, funding will be necessary to facilitate implementation. The ECB also proposed a gradual shift to prevent disruption in the market. Political Debate Emerges as EU Advances Oversight Reform In the meantime, the ECB demanded a position in the governance framework of ESMA. It asked for a non-voting seat on the authority’s board. This would enable the monetary policy and market…

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Filed under: News - @ April 12, 2026 5:04 am