BaFin Official Warns Centralized MiCA Oversight May Add Burdens

Stephan Mögelin, a BaFin official, expressed concerns that centralized EU crypto supervision under MiCA could place extra burdens on firms while reducing flexibility in applying rules. Mögelin stated that even with a central supervisor, national regulators would still hold knowledge of local markets and business models.

Mögelin highlighted the lack of a consistent private-law framework for some crypto assets across EU countries, citing e-money tokens as an example. He noted that these tokens could provide the cash side of tokenized financial-market transactions, but their treatment under private law remains unresolved.

The official emphasized that a centralized MiCA supervision model could reduce flexibility in applying individual provisions, leaving crypto-asset service providers with less discretion. Mögelin also warned that transferring responsibility to a central entity could add burdens, regardless of the outcome.