ESMA direct supervision refers to the European Securities and Markets Authority’s direct regulatory oversight of specific financial entities or activities within the European Union. This involves ESMA assuming direct responsibility for licensing, monitoring, and enforcing rules for certain market participants. It aims to ensure consistent application of EU financial regulations.
Context
ESMA direct supervision is particularly relevant under the MiCA regulatory framework for certain digital asset service providers, especially those issuing significant stablecoins. This approach seeks to harmonize supervision across member states and mitigate systemic risks within the crypto market. The expansion of ESMA’s direct supervisory powers represents a significant step towards a unified European digital asset regulatory landscape.
The push to transfer direct crypto-asset issuer oversight to ESMA redefines the MiCA passport system's risk architecture, demanding immediate review of jurisdictional licensing strategy.
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