EU Regulators Seek Broader Powers to Freeze Suspected Crypto Assets
EU regulators are pushing for stronger enforcement powers to combat crypto crime, citing slow current procedures that allow suspicious assets to 'disappear' before action is taken. The European Securities and Markets Authority (ESMA) wants the power to order crypto firms to freeze assets when there are reasonable grounds to suspect links to financial crime or money laundering.
Under the plan, ESMA would be able to instruct crypto companies to freeze assets whenever there are 'reasonable grounds to suspect' a link to criminal activity. National regulators could also be given authority to take down websites tied to scams or unauthorized crypto companies.
ESMA's proposals target the marketing pipeline that funnels retail investors toward risky or unlicensed products, including misleading marketing techniques and third-party promotion. The watchdog also wants a ban on misleading crypto marketing and new rules covering cross-border activities.