ESMA calls for stronger crypto enforcement powers

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The European Securities and Markets Authority (ESMA) has called for stronger enforcement powers for EU regulators as part of its review of the Markets in Crypto-Assets Regulation (MiCA).

The watchdog proposed giving authorities greater powers to block fraudulent websites and freeze crypto assets when there are reasonable grounds to suspect market abuse or terrorist financing. It also wants stronger tools to tackle unauthorised firms from outside the EU that solicit European investors.

ESMA also proposed tighter rules for crypto marketing, including restrictions on certain misleading practices and third-party promotions, as well as greater transparency on fees and costs.

The proposals form part of ESMA’s response to the European Commission’s consultation on the MiCA review. The regulator said stronger powers would allow faster and more consistent action against fraud and unauthorised activity.