EU Pushes ESMA-Led Crypto Oversight Amid MiCA Tensions
What changes might the EU impose on crypto regulation through ESMA?
Why is the EU prioritizing a unified crypto framework now?
What impact could ESMA-led regulation have on crypto businesses in Europe?

- The European Union is moving to centralize cryptocurrency market supervision under ESMA.
- Fragmented oversight under MiCA rules raises concerns over regulatory inconsistencies and risks to market integrity.
The European Union is accelerating efforts to centralize oversight of cryptocurrency markets under the European Securities and Markets Authority (ESMA), according to Cointelegraph on October 6, 2025. This move seeks to address inefficiencies and inconsistent licensing standards caused by the current system of national-level regulation under the Markets in Crypto-Assets (MiCA) framework.
The EU's 27 member states currently manage crypto firms independently, leading to significant disparities in expertise and regulatory standards across the bloc. MiCA rules, introduced in June 2024, permit national authorities to issue licenses, yet the fragmented approach has resulted in "regulatory arbitrage," where companies pursue licenses in jurisdictions with looser oversight to gain EU-wide access. ESMA flagged these discrepancies, including concerns over Malta's licensing procedures, in a comprehensive review published in July.
Countries such as France, Italy, and Austria are championing centralized supervision to guarantee consistent enforcement across the EU. In its advocacy, France has suggested that strict limitations on crypto firms using MiCA’s "passporting" rule could be necessary to uphold regulatory rigor. This rule enables businesses licensed in one member state to provide services across the EU. France has referred to restrictive measures as an "atomic weapon" to prevent lax national standards from undermining broader oversight efforts.
On the other side, smaller member states like Malta and Luxembourg have voiced apprehensions about centralized oversight. These nations fear that transferring regulatory authority to ESMA could diminish their competitiveness and impose rigid practices that might stifle innovation. Malta and Luxembourg have been active in licensing major crypto exchanges and supporting firms within MiCA's framework, and they worry these efforts may be compromised.
The push for centralized supervision underscores the challenges the EU faces in harmonizing its cryptocurrency market regulations. Proponents argue that unified oversight is essential for protecting the single market's integrity, but detractors caution that granting ESMA greater powers could disrupt established systems and practices.
As of October 6, 2025, 17:08 UTC, OKB (OKB) is trading at $226.13, with a 2.885% increase in 24-hour trading volume, according to market data.
Get real-time crypto breaking news on Unblock Media Telegram! (Click)
Recommended News
NY Regulator Urges Blockchain Tools Amid Crypto Adoption

EU Probes Apple, Google, Microsoft Over Financial Fraud Epidemic

Trump's Fed Overhaul Rattles Crypto Markets as Rate Cut Looms

IRS Eases Crypto Tax Rules as Senate Reviews Digital Asset Policy

Tokenized Stocks Face Mounting Risks, DATs Under Fire
