By Elizabeth Howcroft
PARIS (Reuters) -Malta’s financial watchdog is opposed to a push by other countries to give the European Union’s securities regulator more powers to supervise crypto companies, a spokesperson said on Tuesday.
On Monday, France, Italy and Austria called for the Paris-based European Securities and Markets Authority (ESMA) to take over supervision of major crypto companies, citing concerns that different countries are applying the EU’s new crypto rules differently.
The Malta Financial Services Authority (MFSA), whose crypto licence-granting process came under scrutiny earlier this year, said that it supported ESMA’s work to create “supervisory convergence” between regulators on crypto, but it didn’t back centralisation.
“We believe that centralisation at this stage would only introduce an additional layer of bureaucracy, which could hinder efficiency during a period when the EU is actively striving to enhance its competitiveness,” a spokesperson for the MFSA said in emailed comments.
France, Italy and Austria did not give examples of where regulators had interpreted the rules differently. Financial watchdogs across Europe are divided on whether to give more powers to ESMA.
France’s regulator told Reuters on Monday that it would not rule out challenging crypto licences granted by other EU member states.
France has long been pushing for ESMA to be given greater powers. ESMA head Verena Ross has said she would welcome the move, but it faces resistance from some EU members.
(Reporting by Elizabeth Howcroft; Editing by Tommy Reggiori Wilkes and Susan Fenton)
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