The European Central Bank backed a proposal that would move crypto supervision of major firms from national regulators to ESMA, the European Union’s markets watchdog.
In an opinion published on Friday, the ECB said it fully supports giving ESMA authority over systemically important cross-border capital market firms, including large crypto companies.
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The move could mark the biggest change in EU crypto regulation since MiCA started coming into force in mid-2023.
Right now, CASPs, or crypto-asset service providers, can operate across the bloc under the supervision of one member state regulator. Under the new plan backed by the European Commission, ESMA would take on a larger direct role.
The opinion is nonbinding. Still, it adds weight to the proposal before talks begin among EU lawmakers and governments.
The plan is still months away from law, but the ECB support gives the European Commission a stronger position as the process moves forward.
ECB supports ESMA in push for central crypto supervision
The ECB said the plan would deepen the integration of capital markets and financial supervision across the union. In its opinion, the European Central Bank said the proposals “constitute an ambitious step towards deeper integration of capital markets and financial market supervision within the Union.”
The ECB also gave direct backing to shifting oversight powers from national authorities to ESMA. It said moving authorization, monitoring, and enforcement powers for all CASPs would help align supervision across the bloc. It added that such a system would reduce fragmentation and cross-border risk in crypto markets.
The central bank said the change would “ensure supervisory convergence, reduce fragmentation and mitigate cross-border risks in crypto-asset markets, thereby supporting financial stability and the integrity of the single market.” That language shows the ECB sees the current system as too fragmented for firms operating across several EU countries.
MiCA lets CASPs choose licensing hubs across the EU
Under MiCA, CASPs can receive approval from one national regulator and then serve customers across the European Union. That structure has allowed crypto companies to choose jurisdictions seen as more favorable for licensing and operations.
Several major firms have already followed that path. Kraken set up its EU arm in Ireland. Coinbase and Bitstamp chose Luxembourg. Bitpanda established itself in Austria, while its EU asset management arm chose Germany for licensing.
This structure has created debate around EU crypto regulation. Critics say the system allows regulatory fragmentation because firms can gather in states that offer faster approvals or a more favorable approach.
The proposal supported by the European Commission and backed by the ECB would reduce that national flexibility by giving ESMA more direct control over large crypto firms.
ECB links crypto supervision to bank risk and financial stability
The ECB also connected the issue to the banking sector. It said banks are increasingly linking with crypto companies, either by offering crypto services to clients or by providing services to crypto firms. Because of that, the central bank said risks from crypto could spread into the wider financial system.
In its opinion, the European Central Bank warned that those links could transmit “shocks into the financial system” from crypto. That concern is central to its support for stronger crypto supervision at the EU level.
The bank argues that national oversight alone may not be enough for firms with large cross-border operations.
The ECB then said this trend shows
“the need for a centralised Union supervisory regime for CASPs, capable of addressing the systemic risks posed by CASPs with significant activities, preventing risk migration into the banking system and safeguarding financial stability.”
At the same time, it said ESMA would need enough staff and funding if it takes on that role.
Malta resists ESMA oversight as MiCA remains new
Some EU countries oppose the plan. Malta, which has become a popular MiCA licensing hub, is among the states pushing back. These countries argue that the proposal is premature because the MiCA rules for CASPs only came into force in December 2024.
Their position is based on timing as much as policy. They argue that the EU has not yet had enough time to test how the current MiCA system works in practice. In that view, shifting powers to ESMA now could disrupt a framework that is still new.
Even so, the ECB has now backed the European Commission plan in clear terms. That support does not decide the outcome, but it strengthens the case for central ESMA oversight as negotiations continue inside the European Union.
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: April 13, 2026 • 🕓 Last updated: April 13, 2026
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