EU reviews selecting a single supervisory authority for stock and crypto exchanges

The European Union (EU) is exploring a plan to apply the same regulations to securities and virtual asset (cryptocurrency) exchanges.

On the 3rd (Korean time), according to Cointelegraph, the European Commission (EC) is pursuing a plan to transfer supervisory authority over the entire financial infrastructure, including securities exchanges, virtual asset exchanges, and service providers, to the European Securities and Markets Authority (ESMA).

Currently, the EU has faced criticism that domestic and regional regulators are proliferating, raising cross-border transaction costs and hindering startup growth. Accordingly, it plans to accelerate capital market integration by establishing a single supervisory system similar to the U.S. Securities and Exchange Commission (SEC).

Christine Lagarde, President of the European Central Bank (ECB), said last November, "Expanding ESMA's powers to establish a European-style SEC could be the solution," adding, "There is a need for broad authority to directly supervise the systemic risks of large financial institutions."

The draft is expected to be released in December, and it is also expected to include provisions granting ESMA binding authority to make final decisions on disputes between asset managers.