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ECB backs shifting supervision of systemic crypto firms and venues from national regulators to esma as part of a wider eu capital markets integration push.<\/p>\n
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The European Central Bank (ECB) has endorsed an EU plan to shift supervision of systemically important crypto asset service providers, major trading venues, and central counterparties away from national regulators and into the hands of the European Securities and Markets Authority (ESMA). In an opinion backing the European Commission\u2019s \u201cmarket integration and supervision\u201d package, the ECB said centralizing oversight would \u201censure consistent, high\u2011quality supervision of cross\u2011border market players\u201d and reduce the risk of regulatory blind spots across the bloc. <\/p>\n
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The legislative proposal is now with EU governments and the European Parliament, with negotiations expected to last several months before any law is finalized.<\/p>\n
According to a report from Reuters, the ECB argued that large crypto service providers and trading venues can be \u201csystemically relevant\u201d for the EU\u2019s financial system, warranting supervision at the European rather than national level. \u201cDirect supervision by ESMA of certain market players is warranted to address risks stemming from their cross\u2011border activities,\u201d the central bank said, calling the current patchwork of national oversight \u201cinsufficient\u201d for integrated markets. The plan would give ESMA a lead role on top of its existing responsibilities under the EU\u2019s Markets in Crypto\u2011Assets (MiCA) framework, which already tasks the Paris\u2011based watchdog with drafting technical standards and coordinating supervision.<\/p>\n
Brussels has framed the overhaul as part of its long\u2011running Capital Markets Union agenda, which aims to deepen and harmonize financial markets across the EU. The European Commission\u2019s package, presented in February, would expand ESMA\u2019s direct oversight not just of systemic crypto platforms but also of key clearing houses and trading venues in traditional markets. \u201cA more integrated capital market requires more integrated supervision,\u201d the Commission said when unveiling the reforms.<\/p>\n
The ECB also warned that ESMA must be properly equipped for its expanded crypto mandate, stressing that the authority should receive \u201cadequate staffing and financial resources\u201d to avoid stretching its existing teams. ESMA has previously cautioned that some crypto firms were giving \u201cmisleading impressions\u201d about their regulatory status under MiCA, and urged national watchdogs to step up enforcement. Under the new proposal, firms deemed systemically important could face a single, tougher supervisor in Paris rather than navigating 27 different regimes, a shift that may raise compliance costs but also clarify expectations for large exchanges and custodians operating across the bloc.<\/p>\n
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ECB backs shifting supervision of systemic crypto firms and venues from national regulators to esma as part of a wider eu capital markets integration push. Summary ECB supports putting systemic…<\/p>\n","protected":false},"author":1,"featured_media":1034,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25596","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=25596"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25596\/revisions"}],"predecessor-version":[{"id":25597,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/25596\/revisions\/25597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/1034"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=25596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=25596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=25596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}