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EU pushes to shift oversight of crypto firms to ESMA to fix MiCA loopholes

European Union finance ministers have agreed in principle to transfer oversight of major crypto firms from national regulators to the European Securities and Markets Authority, aiming to close supervisory gaps created by MiCA’s passporting system. The Council agreed on a negotiating position, but legislation is not final and still requires talks with the European Parliament. Under the compromise, ESMA would directly supervise an estimated 10 to 15 firms and gain powers including inspections, investigations and fines.