BaFin official warns centralized MiCA oversight may add burdens
A BaFin official has warned that centralized EU crypto supervision could place extra burdens on firms while reducing flexibility in applying MiCA rules. SummaryBaFins Stephan Mögelin raised concerns about transferring authorization to a centralized EU supervisor.National regulators would still hold knowledge of local markets and business models.Mögelin said EU countries lack a consistent private-law framework for some crypto assets.E-money tokens could provide the cash side of tokenized financial-market transactions. Centralized MiCA supervision could reduce flexibility The European Blockchain Convention‘s Day 2 briefing attributed the warning to Stephan Mögelin of Germany’s Federal Financial Supervisory Authority, or BaFin, during a panel on proposed changes to the Markets in Crypto-Assets framework. Mögelin said centralized supervisors could still depend on knowledge held by national authorities, particularly when dealing with the characteristics of individual markets. “What weve seen, for example, in the application of EMIR, is that with a centralised supervisor, one might assume the application and understanding of specific provisions also becomes somewhat centralised,” he said. You might also like: Binance keeps MiCA plans intact despite Lagarde intervention report According to Mögelin, centralization could leave crypto-asset service providers with less flexibility when regulators apply individual provisions. Moving responsibility after companies have already completed national authorization procedures could also create additional work. “Market participants









