EU Council wants only significant crypto firms supervised by ESMA
70 pts · High·Ledger Insights·1w ago · Oct 13, 10:57 UTC·1 min read
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The EU Council has revised a proposal from the European Commission that aimed to have all crypto asset service providers (CASPs) supervised directly by the European Securities and Markets Authority (ESMA). Instead, EU finance ministers propose that only 'significant' CASPs should fall under ESMA's oversight, which may reduce the regulatory burden on smaller firms.
Key takeaways
- ▸The EU Council’s proposal limits ESMA supervision to only large CASPs, easing regulations for smaller providers.
- ▸This change reflects concerns over regulatory burdens and potential impacts on smaller crypto businesses.
- ▸The decision creates a varying regulatory landscape within the EU as national authorities may interpret 'significant' differently.
Why this matters
Limiting ESMA's oversight to significant CASPs could foster a more supportive environment for smaller firms, promoting innovation within the EU crypto market. However, it raises questions about the consistency of regulation across member states and the potential for regulatory arbitrage, as varying interpretations could lead to uneven compliance requirements.
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