ESMA Proposes Tougher Crypto Regulation Amid Crime and Fraud Concerns
The European Securities and Markets Authority (ESMA) has submitted recommendations to the European Commission's review of the Markets in Crypto-Assets Regulation (MiCA), proposing new powers to freeze crypto assets linked to crime and block fraudulent websites.
The EU's financial markets regulator aims to simplify the framework while strengthening investor protection and addressing emerging models such as decentralised finance (DeFi).
ESMA proposed stricter rules for crypto-asset marketing, especially when products are promoted by influencers and third parties, and called for greater transparency on costs.
The authority also backed proportionate requirements for staking, lending, and borrowing, including disclosure obligations so investors receive clearer information on costs, risks, rewards, collateral arrangements, and potential losses before committing funds.