The Bank of France has formally proposed that the European Securities and Markets Authority (ESMA), headquartered in Paris, should assume primary regulatory jurisdiction over cryptocurrency markets across the European Union. François Villeroy de Galhau, Governor of the French central bank, emphasized the necessity of centralized supervision to ensure market integrity and investor protection within the digital asset space.
This initiative aligns with ongoing efforts to strengthen the Markets in Crypto-Assets (MiCA) framework, particularly concerning stablecoin issuance. The Bank of France recommends implementing more rigorous requirements for stablecoin operators, including enhanced capital reserves, liquidity management protocols, and comprehensive disclosure standards. These measures aim to mitigate systemic risks and maintain financial stability as digital currencies gain broader adoption.
The proposal underscores France’s strategic positioning within European financial governance, leveraging ESMA’s existing infrastructure to create cohesive regulatory standards. This centralized approach would streamline compliance procedures while preventing regulatory arbitrage across member states. Industry stakeholders anticipate these developments could establish clearer operational parameters for cryptocurrency services throughout the single market.
European policymakers are currently evaluating these recommendations as part of broader discussions on digital finance legislation. The outcome could significantly influence how crypto-assets are supervised and integrated into the continent’s financial ecosystem in the coming years.
