LONDON (Reuters) - The high level of concentration in crypto trading, with Binance alone accounting for more than half the market, raises concerns about the impact a failure or malfunction would have on the sector, the EU's securities watchdog said on Wednesday.

"While this might be advantageous from an efficiency standpoint, due to economies of scale, it raises considerable concerns regarding the implications of a failure or malfunction at a major asset or exchange for the wider crypto ecosystem," ESMA said in a detailed overview of the market.