EU targets MiCA loophole that lets crypto exchanges serve 27 countries with one license

EU finance ministers agreed to shift oversight of major crypto companies to a central watchdog, reshaping supervision under MiCA.The Council of the European Union reached a political agreement on Oct. 9 to give the European Securities and Markets Authority (ESMA) direct responsibility for the bloc's most significant crypto-asset service providers, as part of a wider package to integrate European financial markets.The proposed overhaul addresses a weakness in the Markets in Crypto-Assets Regulation (MiCA), which allows firms licensed in one member state to serve customers across the 27-country bloc while remaining primarily supervised by their home-country regulator.The compromise, however, is considerably narrower than the European Commission's original plan to move all crypto service providers under ESMA. Officials estimate that only 10 to 15 of roughly 360 providers would qualify for centralized supervision, Reuters reported.The agreement sets the Council's negotiating position rather than changing the law immediately. The Council must still negotiate the proposal with the European Parliament.National licenses expose gap in EU-wide oversightMiCA's passporting system was designed ...