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The European Central Bank (ECB) has officially announced its support for the proposal to transfer the supervision of crypto-asset providers to the European Securities and Markets Authority (ESMA). The move comes to consolidate 27 national certification bodies into a single regulatory framework based in Paris.
The ECB’s proposal, issued in response to the European Commission’s 2025 Capital Markets Package (COM/2025/941, 942, 943), places ESMA as the direct supervisor of crypto-asset providers in the EU.
This is already facing opposition from Member States who have built their regulatory infrastructure – and their license fees – around the MiCA model.
Ireland, Luxembourg and Malta have emerged as the preferred jurisdictions to issue crypto licenses under the current system. Centralized supervision by ESMA would deprive these countries of their competitive advantage overnight.
This issue is not related to the desire of the European Central Bank for this change, as it clearly supports, but rather the power of the Commission’s corporate markets to withstand the opposition of member states for a long time to become an effective law.
Key requirements:
- Role of the European Central Bank: The bank supports the detailed transfer of supervisors of crypto service providers (CASPs) from national governments to ESMA within the 2025 Capital Markets Package.
- MiCA results: ESMA’s centralized supervision will replace 27 national regulatory systems with a single authority, and eliminate inconsistencies between EU countries.
- Organization request: The ECB is asking for observer (non-voting) membership on the new ESMA Executive Board for crypto discussions, with access to data and setting requirements for self-funding that could lead to risks.
- Stablecoins: The bank is pushing for restrictions on digital currency tokens that are used as stable assets without central bank money, directly preventing the expansion of euro-pegged stablecoins.
- Time: MiCA renewal periods expire in the first quarter of 2026; It is expected that the expansion of ESMA’s powers will begin gradually in conjunction with the due diligence carried out by the European Banking Authority (EBA).
- Risks of licensed sites: Countries with existing licensing systems are at risk of losing their regulatory power and competitive advantage if ESMA centralization is passed.
- Monitoring: Commission discussions on the 2025 package; Any handing over of direct authority to ESMA would mean less politicization of central channels.
What will the ESMA regulations change for stablecoin platforms and providers?
Under the current MiCA system, crypto asset service providers receive a license from their country’s government, and then use this license to operate in the EU (Passporting). This model mimics how financial firms operate under MiFID II.
In theory, this government provides access to the single market, but in practice it creates an asymmetry in enforcement: the licensee in a country with lax national laws faces different challenges than his counterpart in a more complex regime, although both have the same right to work on the whole contract.
ESMA’s direct supervision will bridge this gap. Platforms that exceed the regulatory limits will report to ESMA instead of the national authorities, meaning the implementation of enforcement standards, regular inspections, and penalties imposed on the company.
ESMA already has a register of token providers (ART and EMT) and has the authority to use a blacklist of non-compliant providers. Giving it the power to manage large companies can increase its scope from document processing to enforcement, which is a very different field from organizations.
For stablecoin providers in particular, the push by the European Central Bank to impose restrictions on digital currency tokens as stable assets adds a second layer of restrictions. Currently, these token providers are supervised by the European Banking Authority (EBA) when their reserves reach 5 billion euros or reach 10 million users.
But the restrictions supported by the ECB will set limits beyond that limit. Major exchanges that use many stablecoin platforms – including Binance and OKX, whose databases have been continuously reviewed – face these restrictions if the final rules are implemented.
Why is the ECB pushing now? What do his wishes indicate?
The ECB’s decision was not spontaneous; The European Commission issued three legislative proposals at the end of 2025 (COM/2025/941, 942, 943) aimed at increasing the cooperation of the capital markets by expanding the direct powers of ESMA in clearing houses, central depositories, crypto service providers, and important trading platforms.
The approval of the Central Bank of ESMA came as part of its response to the package, together with a special request of the institution: an observation seat on the new ESMA Executive Board in discussions related to crypto-asset service providers.
This request is very important; Non-voting membership gives the ECB a permanent seat in ESMA’s supervisory discussions without the need to expand the bank’s powers by law.
It is a way to solve the monetary policy through crypto supervision without legal interference, and it is clear evidence that the ECB sees the work of crypto service providers as directly related to financial stability, not the integrity of the financial markets.
The ECB also clarified the issue of staffing, warning that ESMA needs “adequate financial and human resources” to be able to meet the additional responsibilities of the supervisor without being forced to work.
This warning is not just rhetoric. ESMA’s statement in January 2025 – which encouraged national authorities to impose sanctions on those who do not comply with MiCA by the end of the first quarter of 2025 – tested the ability of the organization to coordinate. Increasing direct supervision without increasing the number will undermine the foundation of the organization. These regulatory measures reflect global trends, such as Japan’s reclassification of crypto under the Financial Instruments and Exchange Act, which indicates a global approach to moving cryptos from payments to strong regulation as securities.
A note The European Central Bank helps coordinate crypto supervision under the authority of ESMA appeared for the first time Cryptonews Arabic.
