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Oct 06, 2025The European Commission is preparing sweeping changes that could hand over direct supervisory authority of stock exchanges, cryptocurrency firms, and clearing houses to the EU’s markets watchdog, the European Securities and Markets Authority (ESMA).
Verena Ross, chair of ESMA, told the Financial Times that the proposed changes aim to resolve persistent fragmentation across the EU’s financial sector and create a more unified capital market.
“This would provide a key impetus towards having a capital market in Europe that is more integrated and globally competitive,” she said.
EU Proposes Shifting Financial Market Oversight from National Regulators to ESMA
Under the proposals, regulation of several financial market sectors currently overseen by national authorities would shift to ESMA.
This includes crypto asset service providers, such as exchanges and custodians, who are currently regulated under the EU’s landmark Markets in Crypto-Assets (MiCA) framework. The initial plan was to grant ESMA central oversight, but concerns about capacity led to supervision remaining with individual member states.
Ross said this decentralization has resulted in inefficiencies and inconsistent application of MiCA. “It clearly takes a lot of effort from us and the national supervisors to achieve alignment,” she noted.
In July, ESMA criticized Malta’s licensing process for pan-EU crypto companies, warning that certain risk areas had not been adequately assessed.
The Paris-based authority is already set to supervise consolidated equity and bond price tapes and ESG ratings starting in 2026.
“The demand for breaking down barriers has gone up a level, not just at the EU level but within member states too,” she said.
ESMA Flags Gaps in Malta’s Crypto Licensing
In July, ESMA raised concerns about Malta’s crypto licensing process, following a peer review of the Malta Financial Services Authority (MFSA).
While acknowledging that the MFSA has adequate staffing and sector expertise, the review found that Malta only “partially met expectations” in its authorization of a crypto asset service provider (CASP), with several material issues left unaddressed during the approval stage.
ESMA emphasized that consistency across EU member states is essential under the MiCA regulatory framework, which seeks to standardize how crypto firms are licensed and supervised throughout the bloc.
Source >> EU Plans to Give ESMA Greater Powers Over Crypto and Stock Market Supervision