Svmuu News The European Central Bank (ECB) stated in an opinion released on Friday that it fully supports the European Commission's proposal to transfer regulatory authority for systemically important cross-border capital market companies, such as large trading platforms and crypto firms, to the Securities and Markets Authority (ESMA). The ECB said that transferring the authorization, monitoring, and enforcement powers for all Crypto-Asset Service Providers (CASPs) from national competent authorities to ESMA would ensure regulatory convergence, reduce market fragmentation, and mitigate cross-border risks. Currently, under the MiCA framework, crypto service providers can choose to register in any member state and serve the entire EU, leading companies like Kraken, Coinbase, and Bitpanda to be distributed across different jurisdictions. The ECB emphasized that the increasing connections between banks and crypto companies necessitate a centralized supervisory regime to prevent risks from migrating to the banking system and to safeguard financial stability. This proposal still needs to undergo negotiations with EU legislators and governments, followed by further action by the European Parliament.