Esma seeks MiCA changes for emerging crypto services

The European Securities and Markets Authority (Esma), the EU’s financial markets regulator and supervisor, has proposed changes to the EU’s Markets in Crypto-Assets Regulation (MiCA) covering investor protection, supervision and emerging services including decentralised finance (DeFi), staking and crypto lending.

Responding to the European Commission’s consultation on the MiCA review, Esma called for stricter rules around crypto marketing, particularly promotions involving influencers and third parties, alongside more cost transparency.

It also proposed proportionate requirements for staking, lending and borrowing, including disclosures covering risks, rewards, collateral arrangements and potential losses.

On supervision, Esma shared that it wants stronger powers to address unauthorised services, online fraud and non-compliant stablecoins. Its 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 stronger powers over third country firms soliciting EU investors without MiCA authorisation and rules preventing regulated crypto firms from offering services linked to stablecoins that do not comply with the regulation.