The European Union is set to centralize the supervision of cryptocurrency exchanges and other operators under its main market regulator, the European Securities and Markets Authority (ESMA), the Financial Times reported on Monday.
This initiative aims to create a unified supervisory system that complies with the European Union's Markets in Crypto-Assets (MiCA) framework.
Verena Ross, chair of ESMA, confirmed in an interview with the Financial Times that the European Commission is drafting a plan to transfer cryptocurrency oversight powers from national regulators to ESMA.
Ross said the reform is crucial to building "a more integrated and globally competitive" EU financial market and will address the "continued fragmentation in markets."
Currently, MiCA licenses are granted by individual national authorities, resulting in a patchwork of oversight.