Overview
- The European Commission is drafting proposals to transfer supervision of major cross-border entities to ESMA, according to ESMA chair Verena Ross and Commissioner Maria Luís Albuquerque.
- ESMA argues that duplicative national regimes under MiCA have produced inconsistent outcomes, contending a single supervisor would be more efficient and support capital-markets integration.
- Smaller member states including Malta, Luxembourg and Ireland oppose centralizing powers at ESMA, citing risks to regulatory autonomy and local financial hubs.
- ESMA in July criticized Malta’s authorization of at least one crypto firm for insufficient risk assessment, underscoring concerns about divergent national practices.
- On Oct. 6 the European Supervisory Authorities warned consumers that crypto-assets carry significant risks with potentially limited legal protections, urging checks on providers’ EU authorization status.