Crypto-assets in Europe: MiCA needs to go further

The entry into force of the European Regulation on Markets in Crypto-Assets (MiCA) on December 30, 2024 marked a turning point in the regulation of the sector. Yet, the first months of application have already exposed significant shortcomings: divergent implementation across Member States, high coordination costs, and weaknesses in supervisory and authorization mechanisms. Some gaps are particularly critical, such as the absence of mandatory cybersecurity certification at the authorization stage and the difficulty of ensuring consistent supervision of global operators, who often choose favorable jurisdictions to establish their activities. To address these challenges, Consob, together with France’s AMF and Austria’s FMA, has released a position paper that proposes adjustments to MiCA aimed at strengthening investor protection and achieving genuine harmonization across the European market. The paper identifies four key priorities for action.

The four priorities outlined by the regulators

The first priority concerns the centralized supervision of major crypto-asset service providers (CASPs). According to the regulators, significant CASPs should fall under the direct supervision of ESMA, similar to the approach already applied to significant stablecoin issuers under the EBA. This would prevent regulatory arbitrage and ensure consistent application ...