ESMA calls for expanded powers to enforce EU crypto regulations

Europe’s top markets regulator says its crypto rulebook needs sharper teeth.

On September 30, 2026, the European Securities and Markets Authority (ESMA) published its response to the European Commission’s public consultation on reviewing the Markets in Crypto-Assets Regulation, better known as MiCA. The message was blunt. ESMA wants more enforcement power, both for itself and for national regulators, and it wants the ability to move faster.

The wish list includes freezing crypto assets, taking down scam websites and cracking down on misleading marketing.

What ESMA is asking for

The core complaint is speed. According to ESMA, current procedures are too slow to deal with suspected criminal activity and unauthorized operators.

ESMA warned that potential threats tied to money laundering or terrorist financing can slip away before regulators are able to take any action at all.

To close that gap, ESMA is calling for the power to freeze crypto assets on what it describes as “reasonable grounds” linked to financial crimes.

The second big request targets the front door of many crypto scams: the website. ESMA wants national competent authorities, the country-level regulators that supervise firms day to day, to have the ability to block websites connected to scams.

Marketing and the offshore problem

ESMA also flagged notable gaps in how crypto marketing is supervised. Its proposals include banning misleading marketing techniques, with the measures framed as taking effect immediately.

Then there is the question of firms based outside Europe. ESMA raised concerns about non-EU companies targeting EU investors, and it suggested measures against those that solicit European customers without MiCA authorization.

Why the review matters now

ESMA’s recommendations feed into an ongoing review of MiCA by the European Commission. That review is itself part of a wider debate about centralizing supervisory responsibilities within the EU’s financial regulatory framework.

What this means for investors and crypto firms

For retail investors in Europe, the proposals point toward a market with more guardrails. Faster asset freezes and the ability to block scam sites could make it harder for fraudsters to operate and disappear with deposits.

For crypto service providers, tighter regulatory frameworks tend to come with higher compliance costs. Restrictions on marketing could also reshape how digital asset companies grow.

Licensed firms may see a competitive upside, however. If ESMA’s measures against unauthorized non-EU operators move forward, authorized providers would face less competition from rivals that skipped the licensing process.

There are open questions too. A “reasonable grounds” standard for freezing assets gives regulators speed, but how the threshold is defined, and what recourse exists for anyone caught up in a mistaken freeze, will likely shape how the industry responds. Website blocking raises similar design questions around how quickly scammers can relaunch under new domains, and how consistently national regulators apply the power across member states.

For now, these are recommendations, not law. The European Commission still has to weigh ESMA’s input as part of its MiCA review, alongside the broader debate on supervisory centralization.

Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.