The European Union’s markets watchdog is seeking primary authority over the bloc’s digital asset sector, to better standardize implementation of the EU’s landmark Markets in Crypto-Assets (MiCA) regulatory framework.
In an interview with the Financial Times, Verena Ross, chair of the European Securities and Markets Authority (ESMA), revealed that the European Commission (EC), the executive branch of the EU, is developing plans to bring several sectors, including digital asset, stock exchanges and clearing houses, under ESMA’s supervision and away from individual state regulators.
Ross said this would lead to “a capital market in Europe that is more integrated and globally competitive,” adding that it would “ensure that we are addressing the continued fragmentation in markets and resolve that to create more of a single market for capital in Europe.”
ESMA is the EU authority responsible for improving investor protection and promoting stable, orderly financial markets. While it serves as the bloc’s leading regulator and standard-setter for securities and markets, the principal day-to-day responsibility for supervising market participants lies with the national regulators—or “national competent authorities” (NCAs)—of individual member states. This also applies to the implementation and enforcement of MiCA rules.
After the EU’s MiCA regime for crypto asset service providers (CASPs) came into force in January, digital asset firms such as exchanges, wallet providers, and issuers needed a MiCA license from an NCA to operate in the bloc.
Due to the regulation’s ‘passporting’ feature, a license issued by any member state’s regulator allows the licensee to operate throughout the European Economic Area (EEA), which includes every country in the 27-nation bloc plus Iceland, Liechtenstein, and Norway.
However, due to the speed and frequency certain national regulators have handed out licenses, there has been some concern voiced about the inconsistent rigor with which different member states are enforcing the MiCA rules, particularly smaller, and therefore assumedly less well-resourced, states such as Malta and Luxembourg.
For instance, Malta’s regulator, the Malta Financial Services Authority (MFSA), was the source of negative headlines in June when Reuters reported that a “senior regulatory official” within the EU had questioned how one of the smallest countries in the EU could approve so many licenses so quickly, whilst maintaining all due diligence.
During the development of the MiCA regulation, the EU initially proposed making ESMA the main supervisor of CASPs, but the EU regulator’s ability to handle this task was questioned, and ultimately, the responsibility was left to NCAs.
ESMA Chair Ross told the FT that this decision created inefficiencies. Instead, she argued that putting the primary responsibility in the hands of ESMA would help address “continued fragmentation in markets” while building “a more integrated and globally competitive” EU.
Ross’s interview is not the first hint that the EU is considering handing the reins of the digital assets sector to ESMA. Earlier in September, Maria Luís Albuquerque, EU Commissioner for Financial Services and the Savings and Investments Union, gave a speech at the Eurofi Forum 2025 in Copenhagen, in which she reported receiving industry feedback that “highlights challenges such as divergent supervisory practices, duplications and inconsistent application of EU law.”
She said that this inconsistency creates “additional costs, complexity, and legal uncertainty” for market participants.
“Supervisors lack a coherent overview over cross-border entities and activities, and coordination is limited in case action is needed outside a national context,” said Albuquerque. “That undermines competitiveness, discourages cross-border activity, and makes the EU a less appealing investment destination.”
In order to address this problem, she said the EC was considering a proposal to transfer supervisory powers to ESMA for the most significant cross-border entities.
“In this context, we are looking at possible centralised supervision of certain market infrastructures, such as central counterparties, central securities depositories, and trading venues,” said Albuquerque. “We also see the benefit of more centralised supervision for new and rapidly evolving areas where supervisory capacities need to be up to the task, such as Crypto Asset Service Providers.”
According to the Commissioner, this targeted centralization would not sideline national authorities, as some member states fear.
“On the contrary, it would imply efficient cooperation with national authorities, in the interest of ensuring better oversight and more informed decision-making,” argued Albuquerque.
However, she did not specify a timeline for this proposed change, nor did ESMA chair Ross on Monday. Therefore, it remains unclear whether the EC will proceed with the plan and whether legislation from the EU parliament will be needed.
For the time being, member state regulators remain the primary overseers of the digital asset market in their respective jurisdictions.
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Source: https://coingeek.com/esma-set-to-take-charge-of-eu-digital-markets/