ESMA urges EU regulators to gain stronger powers over crypto firms
The European Securities and Markets Authority says EU regulators need expanded authority to enforce the MiCA crypto rules, including the ability to freeze assets linked to crime.
The European Securities and Markets Authority called on EU regulators to receive broader powers to apply the Markets Markets Markets in the European Union (MiCA) framework. It recommends that national supervisors be allowed to remove fraudulent scam sites and act against unauthorised crypto companies. ESMA also wants the right to compel crypto providers to freeze assets when there are reasonable grounds to suspect links to financial crime, money-laundering or terrorist financing.
The agency proposes prohibiting deceptive marketing tactics and imposing mandatory cost-information disclosures for users. It further suggests giving national regulators tools to tackle crypto firms based outside the EU that target EU investors without proper authorisation. These proposals are part of ESMA’s response to a consultation on MiCA, which is currently under review.
