The European Commission is exploring plans to place stock and cryptocurrency exchanges under central supervision as part of a broader effort to make the bloc’s capital markets more competitive with those in the United States.
The proposed proposal would expand the scope of the European Securities and Markets Authority (ESMA) to include stock and cryptocurrency exchanges, as well as crypto asset service providers and other trading infrastructure, the Financial Times reported. I mentioned on saturday.
The current EU landscape includes multiple national and regional regulatory bodies, which significantly increases the cost of cross-border trade, hindering the development of startups in the region.
Enabling a single supervisory body similar to the US Securities and Exchange Commission could be the next step for the European Union’s Capital Markets Union, which also has the support of European Central Bank President Christine Lagarde.
“Creating a European Securities and Exchange Commission, for example, by expanding the powers of the European Securities and Exchange Commission, could be the solution. It will need a broad mandate, including direct supervision, to mitigate the systemic risks posed by large cross-border companies,” Lagarde said. He said At the European Banking Conference in November 2023.
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The committee is scheduled to publish a draft in December, according to people familiar with the matter who spoke to the Financial Times.
The proposal would also enable the Securities and Markets Authority to have the final say in disputes between asset managers, and issue binding decisions without direct supervision.
France views the license ban as a “passport”, raising concerns for MiCA
The EU’s unified supervision model may address concerns regarding cryptocurrency service providers seeking licenses under more lenient regulatory jurisdictions.
In September, France’s securities regulator threatened to ban “passporting” of cryptocurrency licenses under the Markets for Cryptoassets (MiCA) regulatory regime, raising concerns about implementation gaps in the EU-level regulatory framework.
France also became the third country to invite the Paris-based European Securities and Markets Authority to supervise major cryptocurrency companies, after Austria and Italy.
Under MiCA, which came into force for crypto asset service providers in December 2024, companies licensed in one member state can use this license as a “passport” to operate across the 27-nation bloc.
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Verena Ros, head of the European Securities and Markets Authority, also confirmed the Commission’s plans to transfer oversight of the financial sector from national regulators to the European Securities and Markets Authority in October.
Ross said the proposal aims to address “ongoing fragmentation in markets” and move closer to a single capital market across Europe.
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