ECB Supports ESMA Oversight of Major Cross-Border Financial Firms

The European Central Bank (ECB) has expressed its support for a European Commission proposal to grant the Paris-based European Securities and Markets Authority (ESMA) direct oversight of significant cross-border financial firms, including large crypto asset service providers. According to NS3.AI, this move marks a shift from the current Markets in Crypto-Assets (MiCA) framework, where national regulators are responsible for supervising crypto asset service providers (CASPs), while ESMA primarily plays a coordinating role. Although the ECB's opinion is non-binding, the proposal will now proceed to negotiations among EU member states and the European Parliament.