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.

Financial Services Commission Chairman Lee Eok-won said preparations for the second stage of the Digital Assets Framework Act, including stablecoin institutionalisation, are complete and final consultations are under way. Lawmakers warned South Korea is lagging behind major economies in digital asset rulemaking and cited rising domestic trading in overseas stablecoins. Lee said the framework is largely in place and would be run based on market conditions. He also apologised for losses and market confusion after single-stock leveraged ETF launches.