{"id":62966,"date":"2025-11-15T12:51:02","date_gmt":"2025-11-15T12:51:02","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/why-the-european-commission-wants-to-seize-control-of-crypto-oversight\/"},"modified":"2025-11-15T12:51:02","modified_gmt":"2025-11-15T12:51:02","slug":"why-the-european-commission-wants-to-seize-control-of-crypto-oversight","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/why-the-european-commission-wants-to-seize-control-of-crypto-oversight\/","title":{"rendered":"Why the European Commission wants to seize control of crypto oversight"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251114_2125_Crypto-Oversight-Ambitions_simple_compose_01ka1h5kxwfvns32a3tnsm3xrn-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251114_2125_Crypto-Oversight-Ambitions_simple_compose_01ka1h5kxwfvns32a3tnsm3xrn-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251114_2125_Crypto-Oversight-Ambitions_simple_compose_01ka1h5kxwfvns32a3tnsm3xrn-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251114_2125_Crypto-Oversight-Ambitions_simple_compose_01ka1h5kxwfvns32a3tnsm3xrn-smartcrop-363x181.png\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li>MiCA currently lets companies gain cross-border access via a single national licence.<\/li>\n<li>National regulators and firms fear a loss of control and added bureaucracy.<\/li>\n<li>France, Austria and Italy have backed ESMA\u2019s expanded role for large firms.<\/li>\n<\/ul>\n<p>The European Commission is preparing to give the European Securities and Markets Authority sweeping powers over the crypto sector.<\/p>\n<p>If approved, ESMA would become the sole body responsible for supervising all crypto asset service providers in the European Union, reported Bloomberg.<\/p>\n<p>The proposal marks a significant change to how the bloc regulates digital assets, placing oversight in the hands of a central authority rather than relying on 27 national regulators.<\/p>\n<p>This draft plan, expected to be announced next month, comes just months before the full implementation of the Markets in Cryptoassets Regulation.<\/p>\n<p>MiCA, passed in 2023, is set to become the EU\u2019s flagship framework for crypto regulation.<\/p>\n<p>Under MiCA, companies currently only need a licence in one member state to operate across the bloc.<\/p>\n<p>This structure has been the result of years of work by both regulators and firms.<\/p>\n<h2>MiCA faces uncertainty<\/h2>\n<p>MiCA was designed to provide legal clarity and consistency across the EU.<\/p>\n<p>It allows firms to gain authorisation in a single country and use that to offer services in other EU states. This system is known as passporting.<\/p>\n<p>The goal was to reduce fragmentation and streamline operations for businesses.<\/p>\n<p>But the Commission\u2019s new plan would override this process by giving ESMA direct responsibility for approving and monitoring all providers, regardless of where they are based.<\/p>\n<p>The draft proposal suggests ESMA could delegate tasks back to national authorities when needed.<\/p>\n<p>However, the central point of contact would still be ESMA. This change has raised concerns from those involved in the rollout of MiCA.<\/p>\n<p>With the implementation window closing in 2024, firms and local regulators worry that shifting the framework now could cause delays and confusion.<\/p>\n<p>Critics argue that restarting the discussion around MiCA could undermine legal certainty.<\/p>\n<p>Others say that moving responsibilities to ESMA without enough resources could weaken enforcement.<\/p>\n<p>The proposal still needs support from both the European Parliament and the Council of the EU before it becomes law.<\/p>\n<h2>Pushback from regulators<\/h2>\n<p>The Commission\u2019s move has not gone unnoticed by crypto industry bodies. Many believe that local regulators are better equipped for day-to-day engagement with firms.<\/p>\n<p>Blockchain for Europe, an industry group, has warned that centralising control at this stage would divert attention from the task of getting MiCA running smoothly.<\/p>\n<p>Some consultants have also pointed out that ESMA would require more staff and funding to take on such a role.<\/p>\n<p>National authorities have already invested heavily in building teams and expertise to meet MiCA\u2019s demands.<\/p>\n<p>Replacing that with a central process could result in delays in licensing and supervision.<\/p>\n<p>ESMA chair Verena Ross said earlier this year that the current structure, with 27 separate supervisors preparing for the same task, may not be the most efficient model.<\/p>\n<h2>France backs centralised model<\/h2>\n<p>France, along with EU institutions, has pushed hardest for expanding ESMA\u2019s powers.<\/p>\n<p>In September, regulators from France, Austria and Italy called for ESMA to supervise major crypto firms directly, while smaller companies could remain under national watch.<\/p>\n<p>This idea would create a two-tier system and offer a compromise between full centralisation and local control.<\/p>\n<p>The proposal is part of a wider trend in the EU to centralise financial oversight.<\/p>\n<p>Brussels has also suggested giving ESMA control over clearing houses, trading venues, and depositories.<\/p>\n<p>However, some countries have resisted, arguing that giving up national control could create unnecessary bureaucracy and reduce flexibility.<\/p>\n<p>The urgency of reform increased in July when ESMA raised concerns about Malta\u2019s crypto licensing practices.<\/p>\n<p>The Maltese regulator had issued MiCA approvals to several firms, prompting questions about consistency and due diligence across the EU.<\/p>\n<p>This incident added weight to the argument for a more unified supervisory model.<\/p>\n<p>As the Commission finalises its proposal, the crypto sector remains on edge.<\/p>\n<p>Businesses are waiting to see whether their licensing and regulatory future will remain at the national level or shift entirely to an EU-wide body.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/why-the-european-commission-wants-to-seize-control-of-crypto-oversight\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) MiCA currently lets companies gain cross-border access via a single national licence. National regulators and firms fear a loss of control and added bureaucracy. France, Austria and Italy have backed ESMA\u2019s expanded role for large firms. The European Commission is preparing [&hellip;]<\/p>\n","protected":false},"author":3947362361,"featured_media":62967,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/62966"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362361"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=62966"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/62966\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/62967"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=62966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=62966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=62966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}