Proposal to Transfer CASP Supervision to ESMA is Being Discussed

EU Commission's ESMA Authority Transfer Proposal

EU leaders are evaluating the European Commission's proposal to transfer direct supervision of the largest crypto-asset service providers (CASP) from national regulators to the Paris-based European Securities and Markets Authority (ESMA). This step aims to enhance the cross-border consistency of the MiCA regulation. Under MiCA, firms can operate across the EU by obtaining a license in a single member state, but national differences lead to regulatory arbitrage.

France, Austria, and Italy's Support for Centralized Supervision

France, Austria, and Italy strongly support this proposal. In their joint report published in September 2025, they called for a central authority like ESMA to eliminate cross-country authorization differences and prevent regulatory arbitrage. These countries emphasize the efficiency of single-point supervision in strengthening investor protection.

Malta MFSA's Objections and MiCA Implementation

Malta Financial Services Authority (MFSA) argues that the change is premature. It states that MiCA has just begun full implementation and its effects need to be assessed. ESMA reviewed one of Malta’s CASP authorizations (reported as OKX) under expedited review. It found that Malta meets supervision standards but that the authorization process should be more comprehensive. Technically, MiCA's 'passporting' mechanism tests national authorities' capacities; ESMA reviews reveal inconsistencies in risk-based supervision.

ESMA peer review of a Malta CASP approval. Source: ESMA

ESMA Supervision for OKX and Major CASPs

An ESMA official stated that a single supervisor for large cross-border firms would provide efficient and consistent oversight, strengthening investor protection. Malta suggests strengthening existing tools (peer reviews) and emphasizes that centralization could create structural problems. OKX Europe's CEO says Malta's supervision is of high standards and centralization is unproven. This debate could increase compliance costs for assets traded on platforms like EU detailed analysis.

Market Impacts of the MiCA-ESMA Change

Experts predict that the ESMA transfer will challenge major CASPs (like Binance, OKX). In technical analysis, revising national licenses could affect liquidity. For small coins, ALT futures could create volatility. As of 2026, MiCA is fully in effect; peer reviews have achieved a 20% improvement in AML/KYC standards (ESMA data). Investors should monitor regulatory risk in the EU spot market.

Next Steps in CASP Supervision

EU leaders will vote in the coming months. Malta's objection is challenging the balance, but majority support favors ESMA. This is igniting the centralization debate in the crypto ecosystem.