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

According to Bloomberg, the EU's executive body has announced plans to transfer more regulatory and enforcement powers to its market regulators, sparking debate over the transfer of power from national regulators to Brussels. The proposal, released Thursday, shows that the Paris-based European Securities and Markets Authority (ESMA) will have new powers over major clearing houses, central securities depositories, and exchanges. Less than a year ago, the EU introduced a national regulatory regime for cryptocurrency companies, and these companies, along with pan-European market operators, are now under the agency's jurisdiction. The centralization of most EU market regulatory powers requires the consent of the European Parliament and the Council of Member States, which has been strongly opposed by some member states. The core of the proposal is to strengthen the powers and resources of the ESMA, establishing a board of five independent members with terms of up to five years. The initial setup costs will be borne by the EU budget, with exchanges, central securities depositories, and crypto asset service providers bearing ongoing expenses. To simplify European market operations, the European Commission will also amend legislation to limit member states' additional requirements for securities issuers, streamline licensing procedures to improve cross-border central securities depository services, and hopes to integrate distributed ledger technology into the rulebook. Negotiations on this package will begin in January next year, when Cyprus will assume the rotating presidency of the Council of the European Union.