Aave News Today: EU’s Crypto Reform Ignites Discussion: Balancing Innovation and Stability Under Centralized Regulation
- EU's ESMA gains direct regulatory authority over crypto firms under MiCA, aiming to unify fragmented national rules and address cross-border liquidity risks. - MiCA bans EU crypto firms from co-locating order books with non-EU platforms to prevent regulatory arbitrage and ensure fair market conditions. - France, Austria, and Italy push for standardized licensing, while member states resist centralized oversight despite compliance milestones like Aave Labs' MiCA approval. - Centralized supervision faces c
The European Union is stepping up its plans to unify crypto market regulation, with the European Securities and Markets Authority (ESMA) set to take on expanded oversight of all crypto-related businesses within the EU. This development, which falls under the Markets in Crypto Assets (MiCA) regulation,
With the proposed changes, ESMA would have direct authority over "major" crypto companies, clearing entities, and exchanges,
The drive for unified regulation has been
Nonetheless, progress on compliance is being made.
However, the Commission's proposals are encountering opposition from member states hesitant to relinquish control. The revamped ESMA would also
As the EU moves through this regulatory overhaul, opinions remain split. While centralized regulation is expected to enhance market stability, critics warn it may hinder innovation and fragment liquidity. For now, ESMA’s expanded mandate under MiCA marks a significant change in how Europe manages crypto regulation.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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