The European Union is contemplating a shift in cryptocurrency regulation to the European Securities and Markets Authority (ESMA), potentially centralizing oversight away from national bodies like Malta's Financial Services Authority (MFSA). This proposal comes amid criticism of MFSA's swift approval of MiCA licenses. France, Italy, and Austria are advocating for unified regulation to close regulatory gaps. If adopted, this regulatory centralization could diminish Malta's competitive edge as a crypto hub, despite the EU's aim to harmonize rules across its single market. The move reflects growing concerns over inconsistent regulatory practices within member states.