TLDR
- ESMA Eyes Central Role as MiCA Tightens EU Crypto Oversight
- EU Moves Toward Unified Crypto Regulation Under MiCA Reforms
- MiCA Shake-Up: ESMA to Oversee Cross-Border Crypto Supervision
- EU Pushes for Centralized Crypto Control as MiCA Enforcement Grows
- Stricter MiCA Rules Put ESMA in Charge of EU-Wide Crypto Compliance
The European Union is enforcing stricter control over crypto markets through MiCA Compliance, aiming to unify crypto regulation across all member states. The ESAs have issued a warning to consumers about crypto-asset risks, emphasizing that protection under MiCA Compliance may be limited. Meanwhile, the European Commission is planning a major shift of supervisory power from national bodies to ESMA.
MiCA Compliance governs crypto-asset services such as exchanges and custodians, providing licensing through national regulators. This setup has caused duplication of supervisory functions across 27 states, resulting in inefficiencies and uneven standards. To counter this, ESMA is set to take over cross-border oversight duties under proposed regulatory changes.
While MiCA Compliance ensures a baseline framework, ESMA argues that the lack of centralization weakens consumer protection and increases fragmentation. Many national authorities had to build expertise independently, leading to regulatory delays. The European Commission acknowledges these challenges and is evaluating a formal plan to expand ESMA’s supervisory mandate.
MiCA Compliance Drives Crypto Licensing Shift
National authorities such as Lithuania, Malta, and Luxembourg have issued MiCA Compliance licences to major crypto firms including Robinhood Europe, OKX, and Coinbase. However, inconsistencies in how these licences are issued have raised concerns about regulatory alignment. ESMA’s July review found that Malta’s process only partially met expectations, highlighting gaps in risk assessment.
This lack of uniformity under MiCA Compliance prompted calls for a centralized authority to ensure consistent enforcement. ESMA claims fragmented supervision has undermined transparency and created hurdles for efficient claims handling. The agency views its expanded role as crucial for protecting consumer interests and fostering trust in EU crypto markets.
France has reportedly begun pushing back against cross-border “passporting,” a MiCA Compliance provision allowing firms to operate EU-wide with a single licence. Some critics argue that such resistance may undermine single-market rules, while others fear regulatory overreach. Despite the pushback, the Commission appears committed to implementing a more centralized model.
ESAs Urge Caution as MiCA Compliance Takes Hold
The European Supervisory Authorities issued a public warning reminding consumers to verify if crypto service providers are authorised under MiCA Compliance. The notice also urges users to secure their digital wallets and be cautious of social media promotions by unverified influencers. A factsheet released alongside the warning outlines which crypto assets fall under the regulation.
Consumer protections under MiCA Compliance vary depending on the type of asset and the provider’s regulatory status. The ESAs emphasize that not all products offer the same level of transparency, particularly those not yet covered by MiCA. Therefore, the public must assess the associated risks and verify whether the provider holds a valid EU license.
With MiCA Compliance in force since December 2024, market participants are now facing tighter rules and increased scrutiny. The ESAs recommend that consumers take proactive steps to understand crypto offerings and secure their investments. This push for education and security reflects growing concern over the rising influence of digital asset platforms in the EU market.
