The EC is planning to move regulation of cryptocurrency firms, stock exchanges and clearing houses from national watchdogs to the European Securities and Markets Authority (Esma).
Esma chair Verena Ross told the Financial Times that the move is designed to build “a capital market in Europe that is more integrated and globally competitive,” and address “continued fragmentation in markets".
For crypto the switch would align with Europe's Markets in Crypto-Assets (MiCA) framework which currently sees national authorities issue licenses.
Earlier this year, Esma criticised the process used by Malta for approving pan-EU licenses for crypto providers, notes the FT.
Ross tells the FT: "While we are doing a lot of work to try to make sure the implementation of MiCA is aligned, it clearly takes a lot of effort from us and the national supervisors to achieve that.
“It also means that people had to build up specific new resources and expertise 27 times in different national supervisors, which could have been done more efficiently once at a European level.”
The push to centralise powers at Esma has drawn pushback from some smaller countries with big FS sectors, including Malta, Ireland and Luxembourg.