EU targets MiCA loophole that lets crypto exchanges serve 27 countries with one license
EU finance ministers agreed on a Council negotiating position to give ESMA direct supervision of the largest crypto service providers under a proposed overhaul of financial-market oversight. The plan is narrower than the European Commission’s original proposal: an estimated 10 to 15 of about 360 providers could qualify, based on user numbers and criteria including assets in custody, transaction volumes and financial links. ESMA would be able to inspect firms, investigate breaches, impose penalties and restrict or withdraw authorization. Most providers would remain under national regulators, with ESMA coordinating oversight. A two-year transition is envisaged, and existing licenses would remain valid. The agreement does not change the law yet; negotiations with the European Parliament are still required.
