ESMA Moves to Expand Oversight Over Crypto Firms and Exchanges in EU

ESMA Moves to Expand Oversight Over Crypto Firms and Exchanges in EU

The European Securities and Markets Authority (ESMA) is pushing to assume broader supervisory authority over cryptocurrency companies, exchanges, and cross-border clearing within the European Union.
Currently, oversight is fragmented: each member state regulates crypto firms within its territory. ESMA argues that integrating supervision will reduce regulatory arbitrage, ensure consistent standards, and improve investor protection.
Some smaller EU jurisdictions are resisting, fearing their financial-technology competitiveness may suffer if too much control is centralized at the EU-level.
The move reflects a trend: from viewing crypto firms as niche tech players toward treating them as systemic financial participants. Regulators aim to avoid gaps in oversight as the influence and scale of digital-asset markets continue to grow.