The European Union plans to expand the supervisory and enforcement powers of the European Securities and Markets Authority, covering crypto companies and pan-European market operators.

ChainCatcher News, according to Bloomberg, the European Union's executive body has announced plans to transfer more regulatory and enforcement powers to its market regulator, sparking a debate over national regulators ceding authority to Brussels.

The proposal released on Thursday shows that the Paris-based European Securities and Markets Authority will gain new powers over significant clearing houses, central securities depositories, and trading venues. Less than a year ago, the EU introduced a national regulatory regime for cryptocurrency companies, and now these companies and pan-European market operators will fall under the agency's jurisdiction. The centralization of most market regulatory powers in the EU requires approval from both the European Parliament and the Council of Member States, with some member states firmly opposed.

The core of the proposal is to strengthen the powers and resources of the European Securities and Markets Authority, establishing a board of directors composed of five independent members with a maximum term of five years. The preparation costs will be covered by the EU budget, while ongoing expenses will be borne by trading venues, central securities depositories, and crypto asset service providers.

To streamline the operation of European markets, the European Commission will also amend legislation to limit member states from imposing additional requirements on securities issuers, simplify the licensing process to improve cross-border central securities depository services, and aims to incorporate distributed ledger technology into the rulebook.

Negotiations on this package of plans will begin in January next year, when Cyprus will hold the rotating presidency of the EU Council.