The ECB wants to centralize the supervision of cryptos in Europe

The European Central Bank has just taken a decisive step in the debate on the regulation of cryptocurrencies in Europe. In an opinion published on Friday, it explicitly supports a proposal from the European Commission that could sustainably transform the way digital assets are monitored on the Old Continent. 

The ECB supports a European project for crypto supervision by ESMA

The European Central Bank officially expressed its support last Friday from Frankfurt for the European Commission’s proposal.

The objective: to remove supervision of major crypto companies from national regulators and entrust it to the European Securities and Markets Authority (ESMA). A major paradigm shift.

In its opinion, the ECB clearly targets exchanges and crypto-asset service providers (CASPs) operating cross-border. It classifies them as “systemically important entities.” In other words, their weight and interconnection justify, according to the institution, centralized and harmonized supervision at the European level.

The central bank does not mince words. It considers that this transfer of powers would “ensure convergence of supervision, reduce fragmentation, and mitigate cross-border risks.” In plain terms: put an end to the current regulatory patchwork, where each Member State applies the rules its own way.

Because under the MiCA regime, which took effect mid-2023, crypto companies can obtain a license in any EU country to operate throughout the Union. The result? True regulatory tourism. Kraken chose Ireland, Coinbase and Bitstamp opted for Luxembourg, Bitpanda settled in Austria.

An ambitious project, but filled with obstacles

The ECB’s opinion is not legally binding, but it sends a strong political signal. This project represents the most ambitious overhaul of the European crypto framework since MiCA, and not everyone applauds.

Malta, one of the main MiCA licensing hubs, openly opposes the measure. The island considers the timeline premature: some MiCA provisions for CASPs only came into force in December 2024. Why revisit the work so soon?

Behind this institutional debate lies a very concrete concern. The ECB is sounding the alarm about a growing phenomenon. Traditional banks are increasingly partnering with crypto companies, offering them services or directly proposing exposure products to digital assets to their clients. An increasing entanglement that could, according to Frankfurt, spread shocks from the crypto market to the whole traditional financial system.

It is precisely for this reason that the ECB argues for a centralized supervisory regime capable of containing systemic risks before they migrate to the banking sector. It sets a clear condition though: ESMA must have sufficient funding and staff to assume this role. A requirement far from assured at this stage.

The text still has to go through several stages: negotiations between legislators and European governments, then passage before Parliament. Months of debates are expected.

This reform marks a turning point in European crypto governance. At a time when the taxation of digital assets is also tightening, in France, every taxable disposal must now be rigorously declared under penalty of heavy fines. From individual wallets to the balance sheets of large platforms, crypto no longer escapes regulators’ scrutiny. Europe is moving forward, methodically and without retreat, toward full regulation of the sector.