The European Union plans to grant ESMA greater powers to comprehensively regulate the cryptocurrency and stock markets.
PANews, October 6—According to cryptonews citing the Financial Times, the European Commission is planning a comprehensive reform that would grant the European Securities and Markets Authority (ESMA) direct regulatory authority over stock exchanges, cryptocurrency companies, and clearing houses. ESMA Chair Verena Ross stated that this move aims to address the long-standing fragmentation of EU financial markets and to create a more integrated and globally competitive capital market. Currently, regulatory authority over crypto asset service providers (CASP) is mainly exercised by individual member states under the MiCA framework, but ESMA believes this fragmented approach is inefficient and undermines consumer protection. However, the proposal has faced opposition from smaller countries such as Luxembourg and Malta, who warn that centralizing power could harm their local financial industries.
