The European Securities and Markets Authority (ESMA) has proposed changes to the European Union’s Markets in Crypto-Assets Regulation (MiCA). It has called for stronger investor protection and tighter supervision while also seeking to simplify some requirements.
Source: esma.europa.eu
The proposals include stricter rules for crypto marketing, clearer disclosures for investors, stronger oversight of overseas firms and new guidance for decentralized finance. ESMA suggests clearer rules for classifying crypto-assets. It is also considering a regulated service for companies which provide users with access to DeFi protocols.
One of ESMA’s main concerns is how crypto products are marketed to the public. The regulator wants stronger rules around promotions, particularly when influencers and other third parties are involved in promoting digital assets.
The proposals come as the European Commission reviews MiCA and considers how the regulatory framework should evolve as the crypto industry develops.
BREAKING: 🇪🇺 EU securities watchdog proposes tightening of MiCA crypto rules.
• Standardized crypto rules across all EU nations.
• Block unlicensed stablecoins.
• DeFi gateways licensed and monitored. pic.twitter.com/FfgvmVxwkP
— Bitcoin Archive (@BitcoinArchive) September 30, 2026
ESMA also wants investors to receive clearer information before using crypto services. This could include details about fees, risks, potential rewards, collateral arrangements and possible losses.
The regulator is also looking at services such as staking, lending and borrowing. These activities have become increasingly common in crypto markets, and ESMA wants users to have enough information to understand the risks and terms before using them.
Another part of the proposal focuses on enforcement. ESMA wants European authorities to have better tools to identify, block and shut down fraudulent crypto websites. It also wants authorities to be able to freeze crypto-assets in cases involving suspected market abuse or terrorist financing.
The regulator is also seeking stronger powers over crypto companies based outside the European Union. The proposed framework would give authorities better tools to deal with third-country firms that target EU investors without obtaining the required authorization under MiCA.
ESMA also wants clearer rules preventing regulated crypto companies from offering services connected to stablecoins that do not comply with MiCA requirements.
Decentralized finance is another major area covered by the proposals. ESMA wants clearer criteria for determining whether a crypto activity is genuinely decentralized. It has also proposed a new regulated crypto-asset service for companies that provide users with access to DeFi protocols.
Source: esma.europa.eu
The regulator is also seeking clearer rules for classifying different types of crypto-assets, including newer hybrid tokens. ESMA has proposed giving itself the power to issue binding opinions on token classification. The aim would be to ensure similar crypto products are treated consistently across EU member states.
At the same time, ESMA is not proposing tougher rules across the board. It also wants to reduce some of the administrative burden created by MiCA. Its recommendations include simpler procedures for notifying crypto white papers, fewer duplicated authorization requirements for some regulated companies and more consistent financial safety requirements.
The proposals are part of a broader review of MiCA involving several EU financial institutions. The European Banking Authority has separately recommended considering rules for crypto lending and borrowing, including services through which licensed firms provide customers with access to DeFi lending protocols.
The European Central Bank and national central banks have also raised questions about stablecoin reserves, including how issuers should hold those reserves.
Together, these developments show that the EU is considering both tighter oversight and simpler procedures as it reviews MiCA. ESMA is also looking beyond the immediate review, calling for a future framework covering tokenized securities and on-chain settlement.
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