EU Crypto Regulations Struggle to Balance Centralized Oversight with Regional Knowledge
- EU Commission proposes centralizing crypto oversight under ESMA, replacing MiCA's national regulator model and sparking industry concerns over legal uncertainty and implementation delays. - Critics warn centralized control risks destabilizing MiCA's 2026 rollout, with national regulators arguing they maintain closer firm engagement and ESMA requiring significant resource boosts. - France and ESMA Chair Verena Ross support centralization for regulatory consistency, but timing concerns persist as national
The European Commission is advocating for a major transformation in how cryptocurrencies are regulated across the EU, suggesting that the European Securities and Markets Authority (ESMA) should take on direct supervision of all crypto businesses within the union. This would move away from the current Markets in Crypto-Assets (MiCA) system, which relies on national regulatory bodies,
At present, MiCA requires crypto companies to obtain approval in one EU country, allowing them to operate throughout the bloc using a "passporting" mechanism. National authorities have spent years preparing for this approach, with the transition period ending in 2026.
Industry stakeholders have voiced significant concerns. Robert Kopitsch, secretary general of Blockchain for Europe,
This initiative is part of a broader push by EU lawmakers to unify oversight of financial markets, such as extending ESMA’s jurisdiction over clearing entities and trading platforms.
Nonetheless, critics argue that the timing of this proposal is problematic. National regulators are already dealing with the challenges of putting MiCA into practice, and transferring duties to ESMA might slow down approvals and make compliance more difficult for companies. In July 2025,
The proposal, which remains in draft status, still needs the backing of both the European Parliament and the Council of member states. If enacted, it could represent a significant change in how the EU manages financial regulation, aiming to balance centralized control with the need for local adaptability. For now, the discussion highlights the ongoing struggle between achieving regulatory efficiency and addressing the complex realities of a diverse and high-risk sector.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Fosun's Visionary Move: Digital Assets Propel Insurance Toward a Technology-Enabled Tomorrow
- Fosun Finance's Minsheng Life Insurance launched a virtual asset-linked insurance product, expanding into alternative assets via regulatory-approved "Finance + Technology" integration. - The product secures upfront regulatory approval to mitigate risks, contrasting with India's strict virtual compliance requirements and positioning Fosun to lead digital finance innovation. - Competitors like Hillhouse Capital and Axis Max Life Insurance pursue traditional equity strategies, while Fosun's blockchain-drive
Legal Team Portrays Pardon as Protective Measure Amid 'Crypto Crackdown'
- Binance founder CZ's legal team denied "pay-to-play" claims, asserting his 2025 pardon followed standard procedures and regulatory review. - Attorney Teresa Guillén rejected ties to Trump's crypto ventures, calling allegations "false" and emphasizing Zhao's case was regulatory, not criminal. - Critics like Sen. Warren accused Trump of corruption over World Liberty Financial ties, while the White House defended the pardon as routine presidential authority. - Legal scholars called the pardon "unprecedented
Cardano News Update: DeFi Faces $6M Setback as Low-Liquidity Pools Consume Major ADA Trade
- A dormant Cardano wallet lost $6M via extreme slippage in an illiquid USDA stablecoin pool, spiking its price to $1.26. - The trade exposed risks of large swaps in underfunded pools, flagged by on-chain investigator ZachXBT as a "textbook" liquidity trap. - USDA's $10.6M market cap couldn't absorb the 14.4M ADA swap, costing traders $8 per token and wiping $6.05M in value. - The incident highlights DeFi's slippage risks, with analysts urging better safeguards for high-risk trades on decentralized exchang
Bitcoin News Today: Bitcoin Faces Crucial $94K Threshold: Will It Hold Steady or Plunge Further?
- Bitcoin tests critical support near $94,000 as technical indicators signal bearish momentum amid Fed policy uncertainty and liquidity strains. - Record $463M BlackRock ETF outflows and $1.1B total redemptions highlight worsening market sentiment and institutional distress. - Analysts split between bear market forecasts through 2026 and potential stabilization near $94,000 tied to 6-12 month holder cost bases. - Key resistance at $103,000 remains pivotal - a sustained break could reignite bullish trends w
