Catenaa, Sunday, September 21, 2025- Malta has rejected calls by France, Italy, and Austria to expand the European Securities and Markets Authority’s (ESMA) powers to oversee major crypto firms, citing concerns over bureaucracy and efficiency.
The dispute highlights tensions over the EU’s Markets in Crypto-Assets (MiCA) regulation and its passporting system, which allows licenses from one member state to be valid across all 27 EU nations.
Malta’s Financial Services Authority emphasized support for better coordination among national regulators but opposed centralizing control under ESMA, warning that added layers could slow licensing and hinder competitiveness.
The regulator noted that while Malta’s licensing process has faced scrutiny, it retains expertise and adequate staffing, though a recent ESMA review flagged partial compliance with authorization expectations.
France has taken a stronger stance, calling for ESMA to supervise crypto firms directly and threatening to block licenses issued by other EU states if deemed inconsistent.
Italy and Austria have joined France in advocating for centralized oversight to address uneven application of MiCA rules, citing concerns that regulatory gaps could allow firms to exploit weaker jurisdictions as they expand.
ESMA has indicated support for increased authority but stressed that any transfer of supervisory powers requires unanimous agreement among member states, which remains difficult amid conflicting national priorities.
The regulator has encouraged all EU authorities to strengthen licensing and oversight procedures to ensure consistent application of MiCA rules across the bloc.
