🤡 EU: member states push back against proposal to centralize crypto supervision under ESMA

🤡 EU: member states push back against proposal to centralize crypto supervision under ESMA

The European Central Bank (ECB) officially supported the proposal to transfer supervision of crypto service providers to the European Securities and Markets Authority (ESMA). The purpose is to unify the licensing process under the MiCAframework.

➡️ Under this model, direct supervisory functions across the EU would be carried out by ESMA, headquartered in France🇫🇷, concentrating the regulatory center there.

➡️ Other member states have not welcomed the initiative, since MiCA was originally designed around national competent authorities. In practice, revenue generated through licensing in each country would remain within that jurisdiction.

➡️ Under the current system, preferred jurisdictions for crypto licensing have included Ireland🇮🇪, Luxembourg🇱🇺, and Malta🇲🇹. Centralized supervision by ESMA would reduce that competitive advantage.

➡️ At present, ESMA already maintains a public register of ART and EMT issuers and also manages a blacklist for cryptoassets linked to CASP providers that fail to meet regulatory requirements.

➡️ If expanded ESMA powers are approved, implementation will likely begin gradually during the first quarter of the current year, alongside significance assessments carried out by the EBA.

➡️ In addition, the ECB is introducing restrictions on the use of e-money tokens as settlement assets when central bank money is unavailable, representing a direct limitation on the scale of euro-pegged stablecoins.

#news #crypto #Europe

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