ESMA calls for expanded powers to enforce EU crypto regulations
by@Reuters
Summary
The European Securities and Markets Authority (ESMA) has called for increased powers for European regulators to enhance enforcement of cryptocurrency rules. Specifically, ESMA urged that regulators be granted the authority to instruct crypto companies to freeze assets suspected of being linked to criminal activities, addressing a critical gap where lengthy procedures often allow such assets to disappear before action can be taken. This appeal comes as part of ongoing efforts to bolster the enforcement of the European Union's Markets in Crypto-Assets (MiCA) regulation, which currently assigns enforcement primarily to national regulators, revealing challenges related to regulatory coordination and effectiveness.
Analysis
Elizabeth Howcroft: Elizabeth Howcroft is a financial journalist based in Paris who reports for Reuters on markets regulation and policy developments. She covered the ESMA announcement calling for stronger enforcement tools under the EU's crypto framework. Emelia Sithole-Matarise: Emelia Sithole-Matarise is a Reuters editor responsible for reviewing and preparing financial news stories for publication. She edited the report on ESMA's proposals regarding crypto regulation and enforcement gaps. European Securities and Markets Authority: The European Securities and Markets Authority is the European Union's independent regulator overseeing securities markets, investor protection, and financial stability across member states. It supervises compliance with rules like the Markets in Crypto-Assets regulation and coordinates with national authorities on enforcement. In the reported development, ESMA is urging expanded powers to direct crypto asset freezes, remove scam websites, and address cross-border marketing issues. Regulatory Gaps: Lengthy approval processes for asset freezes in suspected criminal cases frequently result in crypto disappearing before action can be taken. MiCA Enforcement: The EU's Markets in Crypto-Assets regulation assigns primary enforcement responsibility to national regulators, prompting discussions on coordination challenges. Marketing Oversight: Proposals include bans on certain misleading crypto promotions and new rules governing third-party marketing of crypto products.
Categories
macrocryptopoliticstech