ESMA urges revisions to MiCA to enhance clarity, safety and adaptability for new financial services
ESMA calls for changes to make MiCA clearer, safer and ready for emerging services 30 September 2026 Digital Finance and Innovation Investor protection The European Securities and Markets Authority (ESMA), the EU’s…
Source: European Securities and Markets Authority · September 30, 2026 at 6:32 PM · AI-assisted report
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EUROPEAN UNION (EU), 1 OCTOBER 2026 —
ESMA Pushes for Stricter MiCA Rules to Tighten EU Crypto Oversight, Address DeFi and Fraud Risks
Market Impact
The European Securities and Markets Authority (ESMA) has called for sweeping changes to the EU’s Markets in Crypto-Assets Regulation (MiCA), proposing stricter investor protections, enhanced supervisory powers, and clearer rules for emerging services like decentralised finance (DeFi) and staking. The recommendations, submitted on 30 September 2026 in response to the European Commission’s public consultation, aim to make MiCA more effective amid rising risks of fraud, regulatory arbitrage, and unchecked stablecoin activity.
The proposals focus on three key areas: tightening marketing rules to curb influencer-driven promotions, reinforcing ESMA’s ability to combat fraud and non-compliant stablecoins, and introducing clearer classification criteria for crypto-assets—including hybrid tokens—to prevent inconsistent enforcement across the EU. ESMA also seeks to streamline regulatory burdens while laying the groundwork for a future tokenised capital markets framework in Europe.
ESMA’s recommendations include: - Stricter marketing rules, particularly for crypto-assets promoted by influencers or third parties, to ensure investors receive transparent information on costs, risks, rewards, collateral arrangements, and potential losses before making decisions. - Enhanced supervisory tools, such as the power to detect, block, and deactivate fraudulent websites, freeze crypto-assets suspected of market abuse or terrorist financing, and impose stricter oversight on third-country firms targeting EU investors without MiCA authorisation.
- Explicit bans on regulated crypto firms offering services linked to non-compliant stablecoins, reducing regulatory arbitrage opportunities. - Clearer criteria for classifying decentralised activities, including a new regulated service category for firms providing access to DeFi protocols, alongside binding ESMA opinions on token classification to ensure uniform treatment across the EU. - Simplifications to reduce regulatory duplication, such as streamlining white-paper notification procedures and improving prudential requirement consistency.
The proposals also signal ESMA’s long-term vision for a tokenised capital markets framework, which could facilitate cross-border activity and on-chain settlement in Europe. The authority’s response follows a broader EU push to balance innovation with investor protection in the rapidly evolving crypto sector.
While the recommendations still require approval from the European Commission, their adoption could reshape how crypto businesses operate within the EU, particularly those engaging in DeFi, lending, or staking services. The changes may also influence global regulators, including those in Asia, as they assess their own approaches to digital asset oversight.
The next step will be the Commission’s formal review of ESMA’s proposals, with potential legislative adjustments before any new rules take effect.
Related: European Securities and Markets Authority (ESMA)