The European Central Bank (ECB) has expressed support for the European Union's proposal to centralize cryptocurrency regulatory responsibilities under the European Securities and Markets Authority (ESMA), headquartered in Paris. This move aims to unify the currently fragmented regulatory framework, reduce regulatory arbitrage, and enhance cross-border coordination.
Under the proposed plan, ESMA would be tasked with approving white papers, regulating trading platforms, and conducting stress tests on stablecoins. However, further refinement of technical details is needed, including defining ESMA's scope of authority, funding mechanisms, and transitional arrangements.
ECB Backs Centralizing Crypto Regulation Under ESMA
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