European regulators need more powers to police crypto, watchdog says

The European Securities and Markets Authority said on Wednesday that European regulators should be given ​more powers to help them enforce crypto rules, and ‌that ESMA should be able to tell crypto companies to freeze crypto assets when they have reasonable grounds to suspect that they ​are linked to crime.

• ESMA said national regulators, who are ​responsible for enforcing the European Union’s crypto regulation, ⁠called MiCA, could be given powers to remove websites for ​scams or unauthorised crypto companies.
• They and ESMA should be given ​more power to make crypto companies freeze assets in the case of financial crime, money-laundering or terrorist financing, ESMA said.
• “Because of current lengthy ​procedures, when the freezing of suspicious crypto assets (linked to ​criminal activities) is requested, it is often too late and the assets ‌have ⁠disappeared,” it said.
• ESMA also proposed that certain misleading crypto marketing techniques should be banned and there should be rules for third-party marketing.
• Country-level regulators should be given specific powers to combat ​crypto companies in ​non-EU countries ⁠which actively solicit EU investors without having authorisation, ESMA said.
• It proposed that crypto companies should ​be required to provide full cost information to ​customers.
• The ⁠proposals are part of the watchdog’s response to a consultation on MiCA, which is being reviewed. A group of central banks ⁠in ​Europe also published their response last week.
• Some ​regulators have expressed concern about regulatory divergence and patchy enforcement of the MiCA ​rules.

Source : Reuters