EU Aims For ESMA Supervision Over Crypto And Equities
The European Commission is set to implement significant reforms that would significantly broaden the scope of oversight by the EU’s (European Union) financial regulator, ESMA (European Securities and Markets Authority).
Should the proposal be approved, ESMA would take on the direct responsibility for overseeing stock exchanges, crypto asset businesses, and clearing houses throughout the EU region.
In a report released by the Financial Times on 6 October 2025, Verena Ross, the Chair of ESMA, indicated that the primary aim is to address the disjointed nature of Europe’s financial systems and create a more robust, integrated market. “This would serve as a crucial catalyst for developing a capital market in Europe that is more cohesive and able to compete on a global scale,” she stated.
The updated proposal would shift control of sectors like cryptocurrency exchanges and custodians from national authorities to ESMA. These entities are currently regulated under the EU’s Markets in Crypto Assets (MiCA) framework. Instead of granting full oversight to ESMA as initially intended, individual nations opted to defer the responsibility due to uncertainties surrounding ESMA’s capability.
Ross noted that this current arrangement has resulted in inefficiencies and uneven enforcement. “It evidently requires considerable effort from both us and national regulators to achieve consistency,” she remarked.
“Specific new resources had to be duplicated 27 times, once in every member nation, when it could have been handled more effectively at a European level,” she added.
2⃣ European regulators move in
> ESMA in the EU is gearing up to broaden its oversight over digital currency exchanges and clearing houses.
A consolidated EU regulatory framework for crypto could alter compliance requirements — potentially impacting smaller platforms.
Crypto law is accelerating at an unprecedented pace.#CryptoNews
— David Merchandise (@DavidMerch19347) October 6, 2025
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ESMA Oversight Encounters Opposition As EU Seeks To Centralize Crypto Regulation
A Reuters article indicated that ESMA had expressed concerns regarding Malta’s crypto licensing process back in July. The regulatory body pointed out that Malta did not adequately evaluate risks. The organization believes that varying regulations across EU countries undermine consumer safety and trader confidence.
At the same time, the move to grant ESMA greater authority faces opposition from smaller nations, including Luxembourg, Ireland, and Malta.
Claude Marx, the chief financial regulator in Luxembourg, cautioned that concentrating too much authority in ESMA could lead to a regulatory “giant.”
The MFSA, Malta’s financial authority, is contesting the idea of granting ESMA direct supervisory authority over crypto asset companies. However, France, Italy, and Austria argue that centralized oversight is necessary due to MiCA inconsistencies…
— Adya Crypto
Despite the barrier level, the European Commission is moving forward. EU Commissioner for Financial Services, Maria Luís Albuquerque, confirmed they are contemplating a formal proposal to grant ESMA oversight of cross-border entities such as stock exchanges and crypto asset platforms.
In the meantime, ESMA, headquartered in Paris, is poised to oversee equity and bond pricing data along with ESG ratings starting in 2026.
Ross emphasized that enhancing capital markets is crucial for the EU’s long-term objectives, including defense, sustainable energy, and digital infrastructure. “The market demand for dismantling barriers has escalated, not just at the EU level but also within the member countries,” she stated.
Explore: Top High-Risk, High-Reward Cryptos to Buy in 2025
Malta’s Crypto Regulations Fall Short of EU Standards, According to ESMA
In July 2025, ESMA raised alarms regarding Malta’s process for approving crypto asset firms, following an evaluation of the nation’s regulatory body, the MFSA.
The evaluation concluded that Malta possesses adequate personnel and industry expertise. However, it also determined that the country only partially fulfilled the criteria for licensing a crypto asset service provider.
Ursula von der Leyen claims a CBDC will “safeguard European jobs.” Interpretation: programmable currency linked to a government-issued ID—a control system disguised as convenience.
Here’s the risk:
Digital ID ties your identity to every… pic.twitter.com/VSLxVEVx6f
— Jim Ferguson (@JimFergusonUK) October 4, 2025
The evaluation further highlighted that numerous critical issues were not sufficiently addressed during the approval process, while assessing Malta’s overall supervision, licensing practices, and regulatory measures.
ESMA asserted that under the MiCA regulations, EU member states must adhere to uniform rules for licensing and monitoring cryptocurrency firms.
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Key Points
- ESMA highlighted Malta’s crypto licensing for lacking essential risk assessments during approvals
- The EU aims for uniform crypto oversight under MiCA to prevent fragmented regulation across member states
- Smaller nations resist centralizing authority at ESMA, concerned about regulatory overreach
The article EU Aims to Establish ESMA Oversight Over Crypto and Equities first appeared on 99Bitcoins.
