European Central Bank Supports Centralization of Cryptocurrency Supervision

The ECB's endorsement of the Commission's plan is seen as a significant boost to the centralization effort. The proposed changes would bring major cryptocurrency firms under ESMA's oversight, ensuring that they comply with MiCA regulations and reducing fragmentation in the EU market.

The proposal also includes measures to enhance supervision of digital asset service providers (CASPs) and ensure that credit institutions providing crypto-asset services remain subject to centralized banking supervision. The changes aim to preserve regulatory coherence and mitigate cross-border risks in crypto-asset markets, thereby supporting financial stability and the integrity of the single market.

While the ECB has welcomed the Commission's proposal, some member states, including Malta, have expressed concerns about the potential impact on their digital asset industries. The package of proposals will now be debated and voted on by EU lawmakers in parliament, with a possible implementation date of 2027.