ESMA Demands Stricter Crypto Rules

The European Union's securities regulator, ESMA, has called for changes to the bloc's crypto-asset rules. The goal is to strengthen investor protection, close regulatory gaps, and provide clearer rules for emerging services.

These services include decentralized finance (DeFi), staking, lending, and borrowing. ESMA aims to address the risks associated with these new financial instruments.

The regulator believes that current regulations are inadequate in addressing the complex nature of crypto-assets. By strengthening investor protection, ESMA hopes to promote trust in the market and encourage innovation.