EU's MiCA Regulation Faces Supervision Challenges
The European Union's landmark crypto regulation, MiCA, has brought uniform rules for crypto companies across its 27 member states. However, the current system of national licensing and supervision is causing concern. Some countries worry that firms are exploiting differences in oversight for quick approvals, while others push for a more centralised approach.
ESMA Chair Verena Ross envisions MiCA leading to a more integrated and globally competitive capital market in the United States. However, the current setup, with each country issuing licenses and supervising firms independently, risks undermining this goal. France, Italy, and Austria are advocating for ESMA to directly supervise major crypto firms, ensuring consistent oversight across the EU.
Opposition to this shift is strong, particularly from Malta, Luxembourg, and Ireland. These countries fear that enhanced ESMA powers could hinder their competitiveness and create a regulatory 'monster'. Any change would require consensus among all member states, making agreement challenging.
The European Commission is drafting proposals to shift crypto supervision from national regulators to ESMA. This move aims to fix inconsistencies in supervision that could undermine MiCA's main goal of creating uniform rules. However, reaching consensus among EU member states may prove difficult, given the strong opposition from some countries.
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