The EU intends to enhance ESMA’s regulatory authority over cryptocurrencies and stock markets

The European Commission is planning reforms that will empower the European Securities and Markets Authority (ESMA) to oversee stock exchanges, cryptocurrency companies, and clearing houses, aiming to unify fragmented EU financial markets.

Current regulations for cryptocurrency service providers lack effectiveness, with supervision by member states under the MiCA framework. ESMA believes central regulation is necessary for better consumer protection, but smaller nations fear local industry risks.