The European Union plans to create a single supervisory authority for financial markets

EU lawmakers are taking a step toward unified regulation of financial markets by expanding the powers of the European Securities and Markets Authority (ESMA). This decision, announced by representatives of the European Commission, aims to create a single supervisory authority that will oversee not only traditional financial instruments but also the digital asset market.

ECB President's Comment

European Central Bank (ECB) President Christine Lagarde commented on this initiative, noting that the creation of a European Securities and Exchange Commission (SEC) by expanding the powers of ESMA could be the optimal solution for ensuring unified regulation of financial markets. Lagarde emphasized that this will allow ESMA to exercise direct oversight over crypto exchanges, virtual asset service providers, and related trading infrastructure.

Advantages of the New Regulation

According to the head of the ECB, this expanded authority will help address several key issues:

- Oversight of crypto exchanges: ESMA will be able to directly regulate the activities of crypto exchanges, which will enhance investor protection.
- "Passportization" issue: The new approach will prevent the exploitation of loopholes in national legislation within the EU, making the market safer and more transparent.
- Centralization of control: This will ensure a uniform regulatory standard for all market participants, simplifying interactions between different jurisdictions.

European Commission Plans

The European Commission plans to present a draft proposal to expand ESMA's authority in December of this year. This will be an important step towards creating a single financial area within the EU, which, in turn, could facilitate the development of innovative financial technologies and attract investment.

ESMA's Readiness

Earlier, ESMA President Verena Ross stated that her agency is ready to assume the functions of national regulators in the 27 EU countries. This will centralize oversight over crypto exchanges and digital asset custodians, which is an important step toward ensuring the stability and security of financial markets in Europe.

In Conclusion

Thus, the initiative to create a single supervisory authority for financial markets in the European Union opens new horizons for the regulation of both traditional and digital assets, which could significantly increase trust in the region's financial markets.