Malta and ESMA Clash Over Centralized Crypto Supervision Under MiCA

European Union policymakers are considering a proposal to shift supervision of major crypto asset service providers (CASPs) to the European Securities and Markets Authority (ESMA) in Paris. The plan would move key oversight powers away from national regulators, marking a significant shift in how Europe manages its digital asset industry.

France, Austria, and Italy have supported the proposal, arguing that centralized supervision would address differences in national approval processes and reduce regulatory shopping across member states. The issue is particularly important under the Markets in Crypto Assets Regulation (MiCA), which allows firms authorized in one country to operate across the entire European Union.

Malta Warns Against Premature Structural Changes

Malta’s Financial Services Authority (MFSA) has expressed concerns, stating that MiCA has only recently been implemented and its full market impact is still being assessed. Officials warned that introducing centralized supervision too quickly could disrupt existing regulatory frameworks.

Industry Voices Raise Structural Concerns

Supporters of centralization believe a single supervisor would strengthen investor protection and improve consistency. However, critics argue that splitting oversight between ESMA, national authorities, and other bodies could fragment accountability during crises and weaken local regulatory expertise.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.