The European Central Bank has backed the European Commission’s proposal to transfer the task of supervision of big cryptocurrency companies to the EU’s financial markets regulator.
In an opinion released on Friday, the European Central Bank stated that it is completely in favour of placing systemically significant cross-border capital market firms, including major trading platforms and cryptocurrency firms, under the jurisdiction of the European Securities and Markets Authority.
The plans “constitute an ambitious step towards deeper integration of capital markets and financial market supervision within the Union”, according to the central bank.
The plan is expected to be the most significant revision of how the EU will govern crypto firms since the Markets in Crypto-Assets (MiCA) legislation came into force in mid-2023, and it will greatly benefit from the nonbinding conclusion.
Crypto-asset service providers, or CASPs, are permitted to operate under the supervision of an EU member state’s regulator to serve the entire bloc under MiCA, with ESMA establishing certain rules and recommendations.
This ruling has made it possible for cryptocurrency companies to select advantageous jurisdictions for licensing; for example, Kraken established its EU arm in Ireland, while Coinbase and Bitstamp selected Luxembourg. While its EU asset management division opted to obtain a licence in Germany, Bitpanda established itself in Austria.
Some countries, including the popular MiCA licensing hub of Malta, have pushed back against the plan, calling it premature, arguing that the MiCA laws for CASPs only came into force in December 2024.
Source: X.com
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