ESMA Calls for Stricter Crypto-Asset Marketing Rules
The European Securities and Markets Authority (ESMA) has submitted its recommendations to the European Commission for changes to the Markets in Crypto-Assets Regulation (MiCA). The regulator seeks to simplify the framework while improving investor protection and addressing innovative business models, such as decentralised finance (DeFi), staking, lending, and borrowing.
According to ESMA, stricter rules are needed for the marketing of crypto-assets, particularly when promoted by influencers and third parties. Greater transparency in costs is also required, along with proportionate requirements for staking, lending, and borrowing, including through disclosure obligations.
The EU regulator aims to provide clearer information on costs, risks, rewards, collateral arrangements, and potential losses before investment decisions are made. ESMA also recommends strengthening supervisory powers to address the risks arising from unauthorised services, online fraud, and non-compliant stablecoins.