ESMA Calls for New Powers to Freeze Crypto Assets and Block Fraud Sites in MiCA Review

According to BlockchainReporter, the European Securities and Markets Authority (ESMA) responded to the European Commission’s consultation on the review of the Markets in Crypto-Assets Regulation (MiCA) on September 30. ESMA proposed new powers to freeze crypto assets linked to crime and block fraudulent websites.

As reported by BlockchainReporter, the recommendations seek to simplify the framework while strengthening investor protection and addressing DeFi, staking, lending, and borrowing. ESMA proposed stricter rules for crypto marketing by influencers and third parties, and called for greater transparency on costs, risks, rewards, and potential losses for staking, lending, and borrowing.

BlockchainReporter noted that to counter unauthorised services, online fraud, and non-compliant stablecoins, ESMA recommended enhancing capabilities to block fraudulent websites and freeze crypto assets tied to suspected market abuse or terrorist financing. ESMA also sought reinforced powers regarding unauthorised third-country firms and non-compliant stablecoins.

Additionally, ESMA advocated clearer criteria for decentralised activities, a new regulated crypto-asset service for DeFi access, rules for classifying hybrid tokens, and a framework for tokenised securities and on-chain settlement.