đȘđș European Commissionâs Proposal to Expand ESMA Sparks Heated Crypto Regulation Debate
The European Commission has unveiled a proposal that could significantly reshape crypto oversight across the EU â by expanding the powers of the European Securities and Markets Authority (ESMA).
Under this plan, ESMA would gain direct supervisory authority over major crypto-asset service providers (CASPs), aiming to strengthen cross-border regulation and enhance investor protection. But not everyone is cheering.
𧩠Whatâs Changing?
More centralized oversight: ESMA could directly monitor large exchanges, stablecoin issuers, and wallet providers.
Tighter compliance: Firms would face stricter reporting standards under MiCA (Markets in Crypto-Assets Regulation).
EU-wide uniformity: The goal is to reduce regulatory gaps between member states.
âïž Why Itâs Sparking Debate
Critics argue the move could stifle innovation and add bureaucratic hurdles for startups. Others see it as a much-needed step toward building trust in Europeâs crypto markets."