A plan to move supervision of major crypto asset service providers to the France-based ESMA is testing MiCA’s balance between EU-level control and national-level decision-making.
Europe’s next crypto battle is no longer about whether to regulate the industry, but who gets to hold the pen. European Union leaders are weighing a European Commission proposal to hand direct supervision of the bloc’s largest crypto asset service providers (CASPs) to the Paris-based European Securities and Markets Authority (ESMA), shifting front-line control away from national regulators.
France, Austria and Italy believe the move is overdue. In a joint September 2025 paper, their market authorities called for “a stronger European framework,” arguing centralized oversight is needed to address “major differences” in how countries authorize firms and curb regulatory shopping.
Malta’s Financial Services Authority (MFSA) is not convinced. A spokesperson told Cointelegraph it is “premature to introduce structural changes” like centralized supervision. The Markets in Crypto Assets Regulation (MiCA) regulation has only recently become fully applicable, and its “impact on the market and market players is still being assessed,” they said.
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