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Europe’s crypto regulatory framework is entering a new phase of scrutiny as policymakers weigh whether enforcement of the Markets in Crypto-Assets (MiCA) regulation should remain with national authorities or be centralized under the European Securities and Markets Authority (ESMA).
MiCA, which came largely into force at the beginning of 2025, was designed to create a unified rulebook for crypto-asset service providers across the European Union.
But as implementation progresses, disparities between member states are becoming harder to ignore. Some regulators have approved dozens of licenses, while others have issued only a handful, prompting concerns about inconsistent supervision and regulatory arbitrage.
In this week’s episode of Byte-Sized Insight, Cointelegraph explored what those growing pains mean for Europe’s crypto market with Lewin Boehnke, chief strategy officer at Crypto Finance Group — a Switzerland-based digital asset firm with operations across the EU.
Uneven enforcement fuels calls for oversight
According to Boehnke, the core challenge facing Europe isn’t the MiCA framework itself, but rather how it is being applied differently across jurisdictions.
“There is a very, very uneven application of the regulation,” he said, pointing to stark contrasts between member states. Germany, for example, has already granted around 30 crypto licenses, many to established banks, while Luxembourg has approved just three, all to major, well-known firms.
The ESMA released a peer review of the Malta Financial Services Authority’s authorization of a crypto service provider, finding that the regulator only “partially met expectations.”
Those disparities have helped fuel support among some regulators and policymakers for transferring supervisory powers to ESMA, which would create a more centralized enforcement model similar to the US Securities and Exchange Commission.
Related: Italy sets hard MiCA deadline for crypto platforms to comply
France, Austria and Italy have all signaled support for such a move, particularly amid criticism of more permissive regimes elsewhere in the bloc.
From Boehnke’s perspective, centralization could be less about control and more about efficiency.
“From just purely the practical point of view, I think it would be a good idea to have a unified… application of the regulation,” he said, adding that direct engagement with the ESMA could reduce delays caused by back-and-forth between national authorities.
MiCA’s design praised, but technical questions remain
Despite criticism from some corners of the crypto industry, Boehnke said MiCA’s overarching structure is sound, particularly its focus on regulating intermediaries rather than peer-to-peer activity.
“I do like MiCA regulation… the overarching approach of regulating not necessarily the assets, not the peer-to-peer use, but the custodians and the ones that offer services… that is the right approach.”
However, he also noted that unresolved technical questions are slowing adoption, especially for banks. One example is MiCA’s requirement that custodians be able to return client assets “immediately,” a phrase that remains open to interpretation.
“Does that mean withdrawal of the crypto? Or is it good enough to sell the crypto and withdraw the fiat immediately?” Boehnke asked, noting that such ambiguities are still being worked through and are awaiting clarity from ESMA.
To hear the complete conversation on Byte-Sized Insight, listen to the full episode on Cointelegraph’s Podcasts page, Apple Podcasts or Spotify. And don’t forget to check out Cointelegraph’s full lineup of other shows!
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