The European Securities and Markets Authority (ESMA) has called for greater enforcement powers for European regulators to police the cryptocurrency sector under the Markets in Crypto-Assets Regulation (MiCA).
In a response to the European Commission's consultation on reviewing MiCA, published on September 30, 2026, ESMA argued that current procedures are too slow to address suspected criminal activity effectively.
Key Proposals
ESMA recommended that it should be able to direct crypto companies to freeze assets when there are reasonable grounds to suspect links to crime. National regulators should gain the ability to remove websites associated with scams or unauthorized crypto firms.
The watchdog highlighted delays in existing processes: "Because of current lengthy procedures, when the freezing of suspicious crypto assets (linked to criminal activities) is requested, it is often too late and the assets have disappeared."
Additional suggestions include banning certain misleading crypto marketing techniques, establishing rules for third-party marketing, and requiring crypto firms to provide full cost information to customers. Country-level regulators should also receive specific powers to address non-EU companies soliciting EU investors without authorization.
Context and Background
These proposals form part of ESMA's broader recommendations to strengthen investor protection and supervisory capabilities as MiCA is reviewed. The authority also suggested new rules for emerging areas such as decentralized finance and clearer classification of crypto-assets.
