BaFin Official Warns Against Centralized EU Crypto Supervision

A top official at Germany's Federal Financial Supervisory Authority has voiced concerns about centralized EU crypto supervision, arguing that it could raise costs for firms and reduce flexibility in applying MiCA rules.

According to Stephan Mogelin, a senior BaFin official, a central supervisor would still need knowledge held by national authorities, especially when dealing with local market conditions.

Mogelin also stated that transferring responsibility after firms complete national authorization could create more work and questioned whether centralized supervision would justify the added operational burden.