European Central Bank Endorses Centralization of Crypto Oversight under ESMA

ECB Backs Centralizing EU Crypto Supervision Under ESMA

The European Central Bank has voiced support for a proposal to centralize EU crypto asset supervision under the European Securities and Markets Authority (ESMA). The Paris-based agency could become the bloc's single crypto regulator.

Currently, EU crypto oversight is split among member states. While they operate under the MiCA framework, enforcement standards and licensing processes differ. The proposal aims to reduce regulatory arbitrage, boost cross-border coordination, and strengthen investor protection.

Under the plan, ESMA could take on stablecoin issuer oversight, exchange supervision, and white paper approvals, while the ECB would focus on macro-financial risk assessments. Industry observers say the move could lower cross-border compliance costs, but the exact scope of powers and transition arrangements still need to be clarified.