Nearly a year after the Markets in Crypto-Assets Regulation
(MiCA) came into full force, the debate over who should supervise
crypto-asset service providers (CASPs) is intensifying across the
EU. France, Italy, and Austria advocate in favour of granting the
European Securities and Markets Authority (ESMA) direct oversight
of major CASPs. Malta, on the other hand, warned against rushing
into centralisation arguing that it could stifle innovation, add
unnecessary bureaucracy, and undermine the EU's
attractiveness as a crypto hub and instead called for close
cooperation and coordination among national regulators, which is
generally viewed as the more effective and pragmatic approach.
Proponents of central oversight suggest that MiCA could be
weakened by inconsistent application across Member States creating
risks of regulatory arbitrage and weaker investor protection.
France, Italy, and Austria propose a framework similar to the
Single Supervisory Mechanism for credit
