The European Union could create a regulator to oversee crypto exchanges
The European Union study the creation of a regulatory body similar to the US Securities and Exchange Commission (SEC) to grant the European Securities and Markets Authority (ESMA) the power to oversee both traditional stock exchanges and cryptocurrency exchanges operating in the region's 27 countries
The European Commission is evaluating a draft proposal to create a regulatory body similar to the US SEC to oversee crypto exchanges.
According to the Financial Times, the restructuring of the financial supervision framework in the bloc, to be presented next month, envisions “granting the European Securities and Markets Authority (ESMA) direct power to supervise both traditional stock exchanges and cryptocurrency exchanges operating in the 27 countries of the European Union.”
ESMA would then oversee Crypto Asset Service Providers (CASPs), trading platforms, and other financial infrastructure focused on crypto trading. It would also have the capacity to “resolve disputes between asset managers, a function that is currently fragmented among national regulators.”
According to Verena Ross, ESMA’s chairperson, this proposal aims to end the fragmentation of the European market and “move towards a unified capital system, strengthening coherence between the various national regulatory frameworks.”
The cryptocurrency trading regulation project is a response to the regulatory vacuum identified after the launch of the Markets in Crypto-Assets (MiCA) Act, which came into effect in December. 2024.
M.Pino
Source: cripto247
(Reference image source: Carl Campbell on Unsplash)
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