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EU Commission Proposes ESMA Oversight for All Crypto Service Providers

The European Commission’s draft legislation seeks to empower ESMA to oversee EU crypto asset service providers, with potential delegation to national regulators, pending approval by the European Parliament and Council.

Summary

The European Commission has proposed a draft regulation granting the European Securities and Markets Authority (ESMA) the authority to oversee and authorize crypto asset service providers in the EU. This includes the potential for delegation to national regulators. The proposal, which would allow firms to passport services across member states, is awaiting approval from the European Parliament and Council.

Terms & Concepts
  • ESMA (EU securities markets regulator): The European Securities and Markets Authority oversees financial markets in the European Union to ensure stability and investor protection.
  • Crypto Asset Service Provider: A business that offers services related to digital assets, such as exchanges, custody, or trading platforms.
  • European Parliament and Council: The two main legislative bodies of the European Union responsible for passing laws and approving EU-level regulations.