Malta’s financial watchdog has voiced its opposition to a push by other countries to grant the European Union’s securities regulator, the European Securities and Markets Authority (ESMA), more supervisory powers over crypto companies. A spokesperson for the Malta Financial Services Authority (MFSA) stated their position on Tuesday.
This comes after France, Italy, and Austria called for ESMA to take over the supervision of major crypto firms on Monday. Their concern is that different EU countries are applying the new crypto rules inconsistently. While the MFSA supports ESMA’s efforts to create “supervisory convergence” among regulators, it does not endorse centralization.
In an emailed statement, an MFSA spokesperson said, “We believe that centralization at this stage would only introduce an additional layer of bureaucracy, which could hinder efficiency during a period when the EU is actively striving to enhance its competitiveness.”
France’s regulator had previously told Reuters that it would not rule out challenging crypto licenses issued by other EU member states. France has long advocated for giving ESMA greater powers, a move that ESMA’s head, Verena Ross, has welcomed but which faces resistance from several other EU members.
