ECB backs EU plan to centralize crypto oversight under ESMA, aiming to reduce fragmentation and strengthen market integration.
The European Union is moving toward stronger and more unified crypto regulation. A significant proposal has been backed by the European Central Bank. This proposal is intended to consolidate the regulation of crypto providers and financial institutions. Thus, the relocation is an indication of a shift towards greater control in EU markets.
ECB Supports EU Plan for Centralized Crypto Supervision
The proposal was introduced by the European Commission. It proposes the transfer of oversight of key financial actors to one body. This includes crypto-asset service providers, also known as CASPs. Thus, multinational companies will be subjected to a single supervision.
_Related Reading: _****Europe Eyes Ethereum for Euro Stablecoin Layer
The supervision will be transferred to the European Securities and Markets Authority under the plan. This organization, based in Paris, will regulate important market players. These are trading systems, clearing systems, and depositories. Consequently, the EU tries to minimize discrepancies among national regulators.
Furthermore, this proposal was completely supported by the ECB in its April 9 opinion. It termed the plan as a significant move towards greater financial integration. Thus, the EU is hoping to create more competitive and robust capital markets. This initiative also fits into the larger economic objectives.
In addition, the ECB stressed the need for proper funding for ESMA. It said that increased responsibilities must be adequately resourced. Thus, funding will be necessary to facilitate implementation. The ECB also proposed a gradual shift to prevent disruption in the market.
Political Debate Emerges as EU Advances Oversight Reform
In the meantime, the ECB demanded a position in the governance framework of ESMA. It asked for a non-voting seat on the authority’s board. This would enable the monetary policy and market supervision to be coordinated. Thus, collaboration among institutions can be enhanced.
The proposal is, however, not supported by all EU countries. Large economies such as France and Germany are in full support of the plan. They think that centralization will enhance efficiency and minimize risks. Thus, the financial system benefits in the long run in these countries.
Conversely, smaller countries have expressed concerns over the shift. They state that national regulators have a better knowledge of local markets. Thus, they are afraid of losing control over domestic financial control. This disagreement may slow the progress of the proposal.
Moreover, the plan is a major development out of the Markets in Crypto-Assets Regulation. MiCA has already established uniform crypto asset rules within the EU. Nevertheless, there was still some national-level supervision. Thus, the new plan will help address this gap.
Meanwhile, the proposal is presented to the European Parliament to be discussed further. The final structure will be reviewed and negotiated by lawmakers. Thus, the changes can still be made before approval.
To sum up, the EU is making a significant move towards centralized crypto regulation. The fact that the ECB supports the proposal makes it even more important. Thus, this reform may transform the way crypto companies work in Europe. It can also enhance stability and confidence in the financial system.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Can you bypass FSC regulations to buy crypto with a credit card? Odin Ding launches a U.S. debit card crypto purchase service, Wallet Pro
The OwlPay and Wallet Pro services launched by OdinTing use stablecoin technology to enable B2B cross-border payments, and have partnered with international payment giants, showcasing its ambition to expand in the fintech space. By operating from offshore locations, OdinTing bypasses Taiwan’s regulatory restrictions, providing faster virtual-asset trading, while also confronting the newly promulgated Virtual Asset Services Act; in the future, it could become a reference template for other foreign companies entering the Taiwan market.
CryptoCity18m ago
Nigeria's FIRS Begins Trial Against Major CEX Over Alleged Tax Evasion
Nigeria's tax authority, FIRS, has begun legal proceedings against a centralized exchange for alleged tax evasion related to VAT and CIT on cryptocurrency transactions. The trial is set for April 11, 2025, as questions arise regarding the obligation of foreign entities to comply with local tax laws.
GateNews1h ago
Encouraging innovation! U.S. judges ban Arizona from regulating prediction markets, and pause the prosecution against Kalshi
A U.S. federal district court ruled that Arizona cannot use its gambling laws to prosecute the prediction market platform Kalshi, finding that the U.S. Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the boundary between state and federal authority in financial market regulation, and Kalshi insists that its business is financial products rather than traditional gambling. Rulings on prediction markets vary across states, and the Trump family has also expressed support for prediction markets.
CryptoCity2h ago
Is it possible to bypass FSC regulations on buying crypto with card payments? Oadingding rolls out the Wallet Pro service for buying crypto with a U.S. debit card
The OwlPay and Wallet Pro services launched by OdinTing use stablecoin technology to enable B2B cross-border payments, and they partner with international payments giants to showcase their ambitions to expand in the fintech space. By operating from abroad, OdinTing bypasses Taiwan’s regulatory restrictions, offering faster virtual-asset trading, while also facing the newly issued Virtual Assets Services Act; in the future, it may become a reference template for other foreign-invested companies entering the Taiwan market.
CryptoCity3h ago
Encouraging innovation! A U.S. judge bars Arizona from regulating a prediction market and suspends the prosecution of Kalshi
A U.S. federal district court ruled that Arizona is prohibited from relying on its gambling laws to prosecute prediction market platform Kalshi, finding that the federal Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the boundary between state and federal authority in financial market regulation, while Kalshi insists that its business falls under financial products rather than traditional gambling. Rulings on prediction markets vary from state to state, and the Trump family has also expressed support for prediction markets.
CryptoCity5h ago
Bypassing FSC regulations to buy crypto with a credit card: Is it possible? Odin Ding promotes Wallet Pro, a service for buying crypto with a U.S. debit card
OwlPay and Wallet Pro services launched by OdinTing use stablecoin technology to enable B2B cross-border payments, and partner with international payment giants to showcase its expansion ambitions in the fintech space. By operating from abroad, OdinTing bypasses Taiwan’s regulatory restrictions, offering fast virtual-asset trading; meanwhile, as it faces the newly promulgated Virtual Asset Services Act, it is likely to become a reference template for other foreign-invested companies entering the Taiwan market.
CryptoCity6h ago
