The European Commission is planning major reforms that would make the EU’s (European Union) financial regulator, ESMA’s (European Securities and Markets Authority) oversight a lot more expansive.
If the motion goes through, ESMA would be in charge of directly overseeing stock exchanges, crypto companies and clearing houses across the EU bloc.
In an article published by the Financial Times on 6 October 2025, Verena Ross, ESMA’s Chair, explained that the main goal is to fix the fragmented nature of Europe’s financial systems and build a stronger, more unified market. “This would provide a key impetus towards having a capital market in Europe that is more integrated and globally competitive,” she said.
With the new proposal, control of financial sectors like crypto exchanges and custodians will change hands from national regulators to ESMA. These firms are currently governed by the EU’s Markets in Crypto Assets (MiCA) framework. Instead of giving ESMA full oversight as originally planned, individual countries kicked the responsibility down the curb due to concerns about ESMA’s capacity.
Ross confirmed that this setup has led to inefficiencies and uneven enforcement. “It clearly takes a lot of effort from us and the national supervisors to achieve alignment,” she said.
“Specific new resources had to be built up 27 times, once in each member state, which could have been done more efficiently at a European level,” she added.
2⃣ European regulators move in
> The EU’s ESMA is preparing to expand its oversight on crypto exchanges and clearing houses.
A unified EU crypto rulebook could reshape compliance — and possibly squeeze smaller platforms.
Regulation is coming faster than ever.#CryptoNews
— David Merchandise (@DavidMerch19347) October 6, 2025
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ESMA Oversight Faces Resistance As EU Aims To Centralise Crypto Regulation
According to a Reuters report, ESMA had raised concerns about Malta’s crypto licensing process in July this year. The regulatory body said that Malta failed to properly assess risks. The agency believes that having different rules across EU countries weakens consumer protection and investor trust.
Meanwhile, the push to give ESMA more control is facing resistance from smaller nations like Luxembourg, Ireland and Malta.
Claude Marx, Luxembourg’s top financial regulator, has warned that centralising too much power at ESMA could create a regulatory “monster.”
Malta Rejects ESMA’s Crypto Oversight Plan
Malta’s financial regulator, the MFSA, is pushing back against a proposal to grant ESMA direct supervisory powers over crypto firms. While France, Italy, and Austria argue centralized oversight is needed due to inconsistent MiCA…
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(@Adya_crypt) September 19, 2025
Despite the pushback, the European Commission is moving ahead. EU Commissioner for Financial Services, Maria Luís Albuquerque, confirmed that they are considering a formal proposal to give ESMA oversight of cross-border entities like stock exchanges and crypto platforms.
In the meantime, ESMA, based in Paris, is ready to oversee equity and bond price data and ESG ratings starting in 2026.
Ross stressed that stronger capital markets are essential for the EU’s long-term priorities, including defence, green energy and digital infrastructure. “The demand for breaking down barriers has gone up a level, not just at the EU level but within member states too,” she said.
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Malta’s Crypto Regulation Falls Short of EU Standards, Says ESMA
In July 2025, ESMA raised concerns about how Malta approves crypto firms, following a review of the country’s financial regulator, the MFSA.
The review noted that Malta has enough staff and industry knowledge. However, it also found that the country only partially met expectations when authorising a crypto asset service provider.
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Here’s the danger:
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The review further emphasised that several key issues were not properly addressed during the approval process, while analysing Malta’s overall supervision, licensing procedures and regulatory tools.
ESMA stressed that under the MiCA framework, EU countries need to follow consistent rules when licensing and overseeing crypto companies.
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Key Takeaways
- ESMA flagged Malta’s crypto licensing for missing key risk assessments during approval
- EU seeks consistent crypto oversight under MiCA to avoid fragmented supervision across member states
- Smaller countries resist centralising power at ESMA, fearing regulatory overreach
The post EU Shoots For ESMA Oversight Over Crypto And Equities appeared first on 99Bitcoins.
