EU Central Bank Backs ESMA Supervision of Major Crypto Companies

The European Central Bank has given its support to a plan aimed at bringing major cryptocurrency companies under the supervision of the European Securities and Markets Authority (ESMA). This move is part of an effort to deepen capital markets integration within the EU.

In an opinion published on Friday, the ECB expressed its full support for transferring the oversight of systemically important cross-border capital market companies, including large trading platforms and crypto companies, to ESMA.

The central bank argued that this move would ensure supervisory convergence, reduce fragmentation, and mitigate cross-border risks in crypto-asset markets. It also emphasized the need for a centralized Union supervisory regime for crypto-asset service providers (CASPs) due to their increasing interconnectedness with traditional financial institutions.