The European Central Bank supports the EU in strengthening unified regulation of financial market service providers such as cryptocurrency asset service providers

The European Central Bank recently stated its support for the European Commission's push to transfer regulatory authority over systemically important cross-border financial market participants, such as cryptocurrency service providers, major trading venues, central counterparties, and central securities depositories, from national regulatory authorities to the European Securities and Markets Authority (ESMA). This initiative aims to deepen the integration of the EU capital markets and enhance overall competitiveness.

The European Central Bank recommends that the ESMA Board establish a non-voting central bank seat and emphasizes that ESMA needs to be provided with sufficient resources and personnel to smoothly take on the new responsibilities. The relevant proposal will be negotiated by EU member states and the European Parliament, and it is expected to take several months to finalize the legislation.