ESMA seeks broader MiCA powers to freeze crypto, block fraud sites

The European Securities and Markets Authority has urged the European Commission to expand its supervisory and enforcement powers under the Markets in Crypto-Assets regulation, Crypto Briefing reported. In recommendations published on Sept. 30, ESMA said it needs faster-response authority to address money laundering, terrorist financing, online fraud and unlicensed operators. The proposal’s key measures include stronger powers to freeze crypto assets when financial crime or market abuse is suspected and to detect, block and shut down websites linked to fraud. ESMA also proposed broader oversight of offshore operators serving EU investors without MiCA authorization. The recommendations also point to tighter crypto marketing rules. ESMA proposed stricter standards for promotions, including those involving influencers and third parties, along with disclosures on costs and risks. In addition, it called for clearer criteria to determine whether decentralized finance is genuinely decentralized, as well as regulatory and disclosure requirements for staking, lending and borrowing. The European Commission will use the recommendations as a reference in its MiCA review process.