EU Proposes Centralized Crypto Oversight by ESMA
The European Commission this week put forward a proposal to give the European Securities and Markets Authority (ESMA) greater supervisory powers over crypto exchanges, aiming to improve cross‑border enforcement, consumer protection and anti‑money‑laundering oversight across member states. Officials framed the change as a way to close enforcement gaps and harmonize rules, but the move has drawn pushback from industry groups warning it could concentrate authority and create heavy compliance burdens for smaller operators. Critics say centralizing oversight risks stifling innovation and could complicate decentralized finance and custody models, while supporters argue stronger EU‑level supervision is needed after fragmented national regimes failed to prevent high‑profile failures. The proposal now moves to Parliament and member states for negotiation; outcomes will determine licensing, reporting and operational rules that could reshape how exchanges and cross‑border crypto services operate in the bloc.