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The EU suggests transferring the regulation of all cryptocurrencies to ESMA to stop national regulation in the 27 member countries. The new plan centralizes the regulation of crypto firms. The European Commission announced an ambitious regulatory change on Thursday. The executive branch put forward the idea of stopping national regulation of cryptocurrency firms. All supervision would be handed over to the European Securities and Markets Authority. As CoinDesk explains, the commission aims to resolve discrepancies in the different supervisory practices of the member states. The proposal is part of wider efforts to merge EU financial markets. You might also like: EU Explores Centralized Crypto Regulation Similar to SEC Model Why National Regulators Demanded Change In September, France AMF, Austria FMA, and Italy Consob voiced concerns. These regulators asked ESMA to exercise stricter control over the implementation of MiCA. The countries were too different in their approaches. The Markets in Crypto-Assets regulation was designed to introduce coherent rules. But requirements were perceived differently by member states. ESMA showed concern over disparate treatment by countries of the single rulebook objective. The commission said that financial markets are still small and disjointed. In 2024 market capitalization of EU stock exchanges amounted to just 73 percent of the GDP, versus 270 percent in the United States. The differences in the needs of different states make it difficult to operate across borders. Direct Supervision Powers Mirror the US Model The package conveys direct supervisory competencies to ESMA. This involves the regulation of trading venues, Central Counterparties, Central Securities Depositories, and all Crypto-Asset Service Providers. ESMA now coordinates, not supervises. The relocation makes ESMA more similar to an SEC-equivalent. The American regulator has direct supervisory authorities. Such centralized authority does not exist in European markets nowadays. Crypto Industry Sounds Innovation Alarm According to Faustine Fleuret, the…

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Filed under: News - @ December 6, 2025 7:23 am