Counterarguments to centralising CASP supervision in the EU

Abstract

The regulation of Crypto Asset Service Providers {CASPs) in the EU has generated significant debate, particularly concerning the potential centralisation of oversight under the European Securities and Markets Authority. While the Banque de France and the French Autorite des Marches Financiers argue for A standardised EU-level supervision, compelling counterarguments favour a W decentralised approach. This article contends against the EU-wide supervision of CASPs at this time and examines counterarguments emphasising the principles of subsidiarity and proportionality, customised supervision, resource efficiency, and the necessity for supervisory convergence without centralisation. The article is structured as follows: Section A outlines the arguments in favour of centralised supervision, while Section B explores five counterarguments against such centralisation. [excerpt]