[European Central Bank: Supports Transferring Oversight of Large Crypto Companies to ESMA] Odaily Planet Daily News – The European Central Bank (ECB) stated in an opinion released on Friday that it fully supports the European Commission's proposal to transfer regulatory authority over systemically important cross-border capital market companies, such as large trading platforms and crypto companies, to the European Securities and Markets Authority (ESMA). The ECB noted that transferring the authorization, monitoring, and enforcement powers for all Crypto Asset Service Providers (CASPs) from member state regulators to ESMA would ensure regulatory convergence, reduce market fragmentation, and mitigate cross-border risks. Under the current MiCA framework, crypto service providers can choose to register in any member state and serve the entire EU, leading companies like Kraken, Coinbase, and Bitpanda to operate across different jurisdictions. The ECB emphasized that the increasing connections between banks and crypto companies make centralized regulatory systems crucial for preventing risk migration to the banking system and maintaining financial stability. The proposal still requires negotiations among EU lawmakers and governments, followed by further action from the European Parliament.