CryptoBriefing reported that the European Securities and Markets Authority (ESMA) submitted recommendations to the European Commission for the amendment of the Markets in Crypto-Assets (MiCA) regulation, demanding an expansion of its supervisory and enforcement powers. In the recommendations published on September 30, ESMA stated that it needs powers to respond more swiftly to money laundering, terrorist financing, online fraud, and unauthorized operators. Key measures proposed by ESMA include strengthening its authority to freeze virtual assets in cases of suspected financial crime or market abuse, and to detect, block, and shut down websites associated with fraud. It also proposed expanding supervisory powers over offshore operators targeting EU investors without MiCA authorization. Regulations on virtual asset marketing are also expected to be strengthened. ESMA proposed stricter marketing rules, including promotions through influencers and third parties, and the disclosure of cost and risk information. Additionally, it proposed clarifying criteria for determining the actual decentralization of DeFi, and establishing regulations and disclosure requirements for staking, lending, and borrowing. These recommendations will be referenced by the European Commission during its review of MiCA.
