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EU Moves to Centralize Crypto Oversight Under ESMA as Draft Plan Nears

A Commission draft expected in December would shift authorizations to ESMA to address fragmented supervision during MiCA’s rollout.

Overview

  • Draft plans reported by Bloomberg would make ESMA the main supervisor and licensing authority for crypto‑asset service providers across the EU, with publication targeted for next month and negotiations to follow.
  • ESMA chair Verena Ross has endorsed a shift to EU‑level oversight, arguing it would prevent duplicating scarce expertise across 27 national regulators.
  • Industry representatives warn that reopening MiCA now would create legal uncertainty, slow authorizations, and divert resources, and consultants note ESMA would need significant additional staff and funding.
  • Member states are split, with France, Italy and Austria favoring stronger ESMA powers while smaller hubs such as Luxembourg, Ireland and Malta resist ceding supervisory control.
  • Stablecoin risk concerns from the ECB and ESRB are adding urgency to the debate, while the EBA maintains MiCA already contains safeguards for such tokens.