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Europe is entering a new phase of its crypto regulation. The debate is no longer about the need to regulate the sector. Now it is a more sensitive question: who should really be at the wheel, Brussels or the national authorities?
In short
- Europe wants to tighten cryptocurrency oversight without disrupting MiCA’s momentum.
- ESMA is pushing through, but states are refusing to back down too quickly.
- The real stake is politics: better control without reducing the attractiveness of the market.
The crypto debate that is changing nature
Now the real issue is raised. The European Commission has proposed transferring to ESMA part of the supervision of large cryptocurrency providers that was previously carried out by national authorities. The move is part of a broader desire to expand ESMA’s powers. In other words, Europe wants to test more direct supervision of the most important actors.
This shift is not happening by accident. MiCA created a unified framework for cryptoassets in the European Union with common rules for issuers and service providers. The text is valid from 30 December 2024 for the participating actors.
In this model, a permit obtained in one Member State enables operations elsewhere in the Union through a European passport. It is practical for businesses. But it quickly turns a national decision into a continental affair.
Why some countries want more ESMA
France, Austria and Italy took a position as early as September 2025. Their market authorities believe that the first months of MiCA have already revealed large differences in practice between countries. For them, this heterogeneity weakens the single crypto market.
The turning point is also the control carried out by ESMA on the basis of the authorization granted to Malta. The European regulator appreciated the resources and cooperation of the Maltese authority, while also concluding that some substantive points had not been fully resolved and some risk areas had not been sufficiently assessed.
For proponents of centralization, the message is simple. If a single national license opens the door to the entire European market, control must be more uniform. Otherwise, the risk of regulatory forum shopping becomes real and investor protection varies too much depending on the entry country.
Why Malta refuses to back down too quickly
Malta, for its part, does not say no to any evolution. Mainly it says bad timing. According to the MFSA, it is premature to disrupt the supervisory architecture while the true impact of MiCA on the market and its actors is still being evaluated.
This stance is not just about national defense. Opponents of too much centralization argue that a sector as volatile as cryptocurrency needs proximity, local knowledge and accumulated expertise. Too far a view may be more uniform on paper, but less refined in reality.
Another more technical criticism: the risk of a regulatory conundrum. If ESMA supervises a part, national authorities keep other parts and AMLA also intervenes in certain topics, the overall risk assessment can be fragmented. However, DORA’s logic tends towards an integrated vision.
A real strategic choice for Crypto Europe
In the end, Europe has to choose between two promises. The first is a unified and more legible crypto market better protected against loopholes in regulatory arbitrage. The second is national sovereignty, which preserves flexibility and responsiveness.
The most likely scenario is not a total shift, but a hybrid model. Truly systemic and highly cross-border crypto actors could be more closely supervised by ESMA. Others would remain under national control with strict convergence requirements. If the EU wants to avoid unnecessary institutional shock, this is the most coherent way.
One thing is already clear: the future of the European crypto market no longer depends only on the contents of MiCA. It also depends on those who will be responsible for its application. And at this point, Europe plays much more than just an administrative debate. It plays on its credibility, competitiveness and ability to regulate innovation without stifling it. Meanwhile, Charles Schwab paved the way to buy Bitcoin and Ethereum.
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Fascinated by Bitcoin since 2017, Evariste has been constantly researching the topic. While his initial interest was in trading, he now actively seeks to understand all developments focused on cryptocurrencies. As an editor, he strives to consistently produce high-quality work that reflects the state of the industry as a whole.
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Before making any investment decision, do your own research.
