The EU plans to expand the regulatory and enforcement powers of the European Securities and Markets Authority, involving cryptocurrency companies and pan-European market operators

According to Bloomberg, the EU's executive body has announced a plan to transfer more regulatory and enforcement powers to its market supervisory authorities, sparking a debate among national regulators about ceding power to Brussels.

The proposal released on Thursday indicates that the Paris-based European Securities and Markets Authority will gain new powers over significant clearing houses, central securities depositories, and trading venues. Less than a year ago, the EU introduced a national regulatory framework for cryptocurrency companies, and now these companies, along with pan-European market operators, fall under the authority of this agency. The centralization of most market regulatory powers in the EU requires the approval of the European Parliament and the Council of Member States, with some member states strongly opposing it.

At the core of the proposal is the strengthening of the powers and resources of the European Securities and Markets Authority, which will have a board composed of five independent members serving a maximum term of five years. The preparatory costs will be covered by the EU budget, while trading venues, central securities depositories, and crypto asset service providers will bear ongoing expenses.

To simplify the operation of the European market, the European Commission will also revise legislation to limit additional requirements imposed by member states on securities issuers, streamline the licensing process to improve cross-border central securities depository services, and hopes to incorporate distributed ledger technology into the rulebook.

Negotiations on this package of plans will begin in January next year, when Cyprus will hold the rotating presidency of the EU Council.