ESMA Demands Stricter Crypto Rules Amid Investor Protection Concerns

The European Union's securities regulator has called for changes to the bloc's crypto-asset rules. The regulator aims to strengthen investor protection, close regulatory gaps, and provide clearer rules for emerging services including decentralized finance (DeFi).

To achieve these goals, ESMA recommends that EU policymakers implement stricter regulations around the marketing of unregulated investment products.

The calls come as part of a broader effort by regulators to address concerns over investor protection in the crypto space. The current rules have been criticized for being too vague and allowing market participants to take advantage of investors.