The European Union is quietly preparing a major shift in how crypto companies are supervised—and the plan has already stirred anxiety among businesses, regulators, and policy experts.
Instead of letting each member state oversee the platforms operating within its borders, the EU wants to hand that responsibility to a single, central body.
And while the idea might sound efficient on paper, many in the industry say it may cause more problems than it solves.
Brussels Moves to Pull Crypto Oversight Under One Roof
According to new details shared on Friday, the European Commission is pushing forward with a proposal that would move crypto supervision from national regulators to the European Securities and Markets Authority (ESMA).
This is the same agency that already oversees traditional financial markets across the bloc.
The idea isn’t entirely new—EU officials hinted earlier this year that they wanted a more unified, globally competitive system.
Verena Ross, ESMA’s chair, recently explained that enforcing MiCA across 27 different regulators is slower, messier, and more resource-intensive than it should be.
She pointed out that each country has had to build its own crypto expertise and enforcement teams from scratch, even though much of the work overlaps. A single authority, she argued, could streamline the entire process.
Draft Plans Reveal ESMA Would Handle Approvals and Daily Oversight
Early drafts circulating in the EU show that ESMA would not only become the main supervisor but also the body responsible for authorizing new crypto companies—essentially acting as the guardian for all Crypto Asset Service Providers (CASPs) across Europe.
This idea was floated during MiCA’s development, but it wasn’t adopted at the time. Now, the Commission seems ready to revisit the proposal.
But not everyone is thrilled about reopening MiCA so soon after its rollout began.
Industry Leaders Warn That Changing MiCA Now Could Disrupt Everything
Crypto policymakers and industry organizations argue that shifting responsibilities mid-implementation could unravel years of work. One of the strongest voices pushing back is Robert Kopitsch, secretary general of Blockchain for Europe.
He warned that reopening MiCA this early would cause chaos—delaying approvals, creating legal uncertainty, and pulling valuable resources away from applying the rules already in place.
Kopitsch says that if the EU wants a centralized model, it should come later—after regulators gather real-world experience from MiCA’s first few years.
Experts Say ESMA Might Handle It—But Not Without More Support
Andrew Whitworth, who advises crypto companies on regulatory matters, believes digital assets could serve as a good testing ground for ESMA. But he also stressed that the agency would need significantly more resources than it currently has.
At the moment, national regulators are the ones doing the heavy lifting. Moving everything to ESMA, Whitworth said, would be extremely challenging during an ongoing rollout. Changing the rules midway is like “moving the goalposts while the match is still on.”
Smaller EU Countries Push Back, Warning of Economic Consequences
It’s not just policy groups speaking out. Countries like Ireland, Luxembourg, and Malta—major financial hubs—are worried that moving authority to ESMA could weaken their local markets.
These nations have built robust crypto and fintech sectors partly because they handle licensing and supervision themselves. A sudden shift could strip them of influence and disrupt established relationships between companies and local regulators.
Judith Arnal, a senior research fellow and financial expert, recently said the disagreement among EU institutions has led to a sort of regulatory stalemate.
She warned that repeatedly tinkering with MiCA—especially the parts dealing with stablecoins—risks damaging the credibility of Europe’s entire crypto framework before it’s even fully established.
EBA and ECB Clash Over Stablecoin Rules
The tension doesn’t end there. Earlier in the week, the European Banking Authority responded to concerns raised by the European Central Bank and the ESRB about stablecoins and financial stability.
The ECB wants tougher restrictions, including a ban on multi-issuance stablecoins. But the EBA pushed back, saying MiCA already contains safeguards designed to prevent exactly those risks. Rewriting the rules now, they implied, might be unnecessary overkill.
Bitcoin Holds Firm Amid Policy Debates
While regulators continue debating the future of European crypto oversight, Bitcoin remains relatively steady, trading around $95,796 over the past week. Investors seem to be watching EU developments closely but haven’t reacted dramatically—at least not yet.
Final Thoughts
The EU’s desire for a smoother, more centralized regulatory system isn’t surprising, but many believe the timing couldn’t be worse. MiCA is only just beginning to take effect, and businesses are still adapting.
A sudden policy shift risks confusing companies, slowing approvals, and undermining global confidence in Europe’s leadership on digital-asset regulation.
What happens next will likely shape the region’s crypto landscape for years.
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