EU finance ministers agreed to put the bloc's most significant crypto-asset service providers under direct ESMA supervision, narrowing a gap in how MiCA works. Officials estimate only 10 to 15 of roughly 360 providers would qualify, and the Council must still negotiate with the European Parliament.
The Council of the European Union reached a political agreement on Oct. 9 to give the European Securities and Markets Authority (ESMA) direct responsibility for the bloc's most significant crypto-asset service providers. The move is part of a wider package to integrate European financial markets.
The proposal targets a weakness in the MiCA regulation. A firm licensed in one member state can serve customers across the 27-country bloc while its home-country regulator remains its primary supervisor.
Compromise covers only a small group of firms
The deal is narrower than the European Commission's original plan to move all crypto service providers under ESMA. Officials estimate that only 10 to 15 of roughly 360 providers would face centralized supervision, as Reuters reported.
The agreement sets the Council's negotiating position rather than changing the law immediately. The Council must still negotiate the proposal with the European Parliament.
Malta review exposed the licensing gap
The consequences of national licensing emerged in a July 2025 ESMA review of the Malta Financial Services Authority's authorization of an unnamed crypto provider. Reviewers found insufficient evidence that the licensing assessment adequately addressed governance, conflicts of interest, technology infrastructure, custody arrangements and certain anti-money-laundering risks.
However, the review did not establish that every Maltese license was deficient. It also credited the regulator with sector expertise and sufficient supervisory resources.
Malta opposed transferring supervision to ESMA in September 2025, arguing that MiCA was too new to justify an additional regulatory layer.
Thresholds decide who moves to EU oversight
Under the Council's draft, ESMA would directly oversee providers with at least 15 million active EU users, or those meeting three of five additional significance criteria. Those criteria include more than 1 million active users, over €1 billion in crypto assets under custody and more than €4 billion in annual client transactions.
ESMA would gain powers to request information, conduct inspections, investigate breaches and impose financial penalties. The Council also envisages a two-year transition, and existing MiCA licenses for firms brought under direct supervision would remain valid.
The final thresholds, ESMA's available resources and the treatment of providers near the boundary remain open questions.
Source: CryptoSlate
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