EU securities regulators’ powers expanded, cryptocurrency licensing regime faces changes

Source: DigitalToday Original Title: Expansion of ESMA’s Authority in Europe… Licensing System Changes Expected Original Link: The (EU) is pushing forward a plan to expand the powers of the European Securities and Markets Authority ((ESMA)), sparking concerns within the financial industry.

The move aims to have ESMA directly supervise crypto asset service providers, exchanges, and central clearinghouses within the EU, and is expected to introduce a centralized licensing system.

Fleur Mopo Protocol’s Head of Public Policy commented, “If ESMA goes beyond pure supervisory functions and takes on licensing authority, it could have a negative impact on the growth of startups.” The proposal requires approval from the European Parliament and Council, and once passed, ESMA will serve as a central regulatory authority similar to the U.S. Securities and Exchange Commission ((SEC)).

This move could fundamentally change the structure of the EU financial market.