ESMA Cracks Down on EU Crypto Regulation Gaps
The European Securities and Markets Authority (ESMA) is pushing for stronger enforcement of EU crypto regulation. The watchdog believes current tools are too slow to stop scams, money laundering, and unauthorized trading. ESMA wants the power to order crypto firms to freeze assets suspected of being linked to crime, money laundering, or terrorist financing. National regulators could gain authority to take down websites tied to scams or unauthorized crypto companies.
ESMA is also pushing to ban misleading crypto marketing tactics and set rules for third-party promotion. Country-level regulators would get specific powers to combat non-EU crypto firms illegally soliciting EU investors. Crypto companies could be required to disclose full cost information to customers.
The proposals are ESMA's contribution to a wider consultation on the Markets in Crypto Assets Regulation (MiCA), which is currently under review. MiCA came into force in 2026, and ESMA's recommendations aim to address the gaps exposed since its implementation. The watchdog believes that European regulators should be given more powers to help them enforce crypto rules.