Central regulatory control of crypto firms in the EU proposed by France to prevent potential restrictions on these entities
In a significant development, France, along with Italy and Austria, has called for the European Securities and Markets Authority (ESMA) to take on supervisory responsibilities over major cryptocurrency firms within the European Union. This push is part of a broader initiative to shift regulatory oversight to ESMA, based in Paris.
The proposed revisions aim to enhance cybersecurity measures and refine how authorities manage new digital asset offerings. France has consistently championed the idea of expanding ESMA's regulatory powers, a sentiment echoed by ESMA's head, Verena Ross.
The urgency for this move is due to concerns that crypto companies are gravitating towards jurisdictions with more lenient licensing processes. Marie-Anne Barbat-Layani, the head of France's financial watchdog, has emphasized significant inconsistencies in how national regulators are applying the new rules.
The review by ESMA found that certain national regulators, like Malta, faced scrutiny for their licensing processes. This review indicated insufficient risk assessment when granting licenses to crypto firms. In response, France, Italy, and Austria support France's demand for ESMA to gain stronger supervisory authority over major cryptocurrency firms under the MiCA regulation framework.
However, this proposal faces resistance from certain EU member states. The challenges ahead in establishing a cohesive regulatory approach for the digital asset market are highlighted. Barbat-Layani has threatened to challenge the validity of licenses granted by other EU member states if the centralized oversight is not established.
The proposed revisions also aim to impose stricter rules on crypto activities outside the EU. Crypto companies are in the process of applying for MiCA licenses, which could potentially disrupt the 'passporting' mechanism that allows companies approved in one country to operate throughout the European Union.
Meanwhile, jurisdictions like Luxembourg and Malta have already granted approvals to prominent platforms such as Coinbase (COIN) and Gemini (GEMI). It remains to be seen how the proposed changes will impact these approvals and the broader crypto landscape in the EU.
In a separate development, Pakistan has invited crypto firms to serve its 40 million users, a move that underscores the global growth and potential of the crypto industry. As the regulatory landscape continues to evolve, it is clear that the future of cryptocurrencies in the EU and beyond will be shaped by these ongoing debates and decisions.
Read also:
- Strategizing the Integration of Digital Menus as a Core Element in Business Operations
- Financial Actions of BlockDAG Following Inter and Borussia Agreements: Anticipating Future Steps
- International powers, including France, Germany, and the UK, advocate for the reinstatement of sanctions against Iran.
- Companies urged to combat employee resignation crisis, as per findings from the Addeco Group
