The European Central Bank (ECB) has formally expressed its support for the European Commission’s proposal to centralize financial supervision of Bitcoin (BTC) and the crypto ecosystem within the European Union (EU).
The initiative aims to give the European Securities and Markets Authority (ESMA) direct supervisory powers over systemic and cross-border capital market actors. This specifically includes large digital asset service providers. These have become more relevant following the full implementation of the MiCA regulatory framework at the end of 2024.
In an official statement published on April 9, the ECB argues that this deeper integration will strengthen private risk sharing and help stabilize economic growth in the face of localized shocks. Similarly, he claims that Aiming to reduce systemic risk What does the growing scale of crypto companies mean for the general banking system?
This approach aims to reduce regulatory fragmentation and move towards a more integrated capital markets union, allowing European companies to access financing in a more agile and competitive manner without relying on the US market.
By moving the regulation of systemically important cross-border actors directly to Paris-based ESMA, ESMA will no longer have a mere coordinating function, but will instead exercise direct authority. The agency will have investigation, sanctions, and compliance powers over the largest companies in the cryptocurrency space. Meanwhile, the ECB called for a non-voting seat on the ESMA board. Contribute your experience in monetary policy and payment system.
Despite institutional support, this initiative has sparked debate among legal experts. Cristina Carrascosa, a lawyer specializing in bitcoin and cryptocurrencies, said this was “not the best outcome” and argued that member states could have applied uniform standards. There is no need to centralize authority.
Carrascosa also warned of the risk that monetary policy would be dominated by member states with more traditional influence, rather than reflecting the diversity across the bloc.
“If we are to centralize oversight of critical financial infrastructure, ESMA’s executive board must be equally comprised of representatives from across the union, rather than being dominated by the usual member states who usually have influence over monetary policy.” “Shouldn’t it be?” he asks.
The ECB concludes that this transition is an ambitious step towards improving the liquidity and competitiveness of European markets. But businesses warn that ESMA’s new obligations will require a significant increase in resources Gradual transition by national regulatory authorities Ensure complete stability of the financial system.
This entire move by the ECB to strengthen control and oversight over the crypto sector is in response to its roadmap launched in November 2025. As reported by CriptoNoticias, at the time, the European Commission had begun developing a project to centralize the supervision of key financial infrastructure, including stock exchanges and digital currency exchange platforms.
(Tag Translation) Central Bank
