Esma Proposes Stricter Crypto Marketing Rules in MiCA Overhaul

European Securities and Markets Authority (Esma), the EU's financial markets regulator and supervisor, has proposed changes to the European Union's (EU) Markets in Crypto-Assets Regulation (MiCA). The proposals focus on investor protection, supervision, and emerging services including decentralised finance (DeFi), staking, and crypto lending. Esma called for stricter rules around crypto marketing, particularly promotions involving influencers and third parties, alongside more cost transparency.

The regulator also proposed proportionate requirements for staking, lending, and borrowing, including disclosures covering risks, rewards, collateral arrangements, and potential losses. Additionally, it wants stronger powers to address unauthorised services, online fraud, and non-compliant stablecoins. Esma's proposals include greater capacity to block fraudulent websites and freeze crypto assets where market abuse or terrorist financing is suspected.

The regulator also called for a framework covering tokenised securities and onchain settlement to support the European tokenised capital market and future cross-border activity. Furthermore, it proposed clearer criteria for determining when activities are genuinely decentralised and a new regulated crypto asset service for firms providing access to DeFi protocols.