ESMA Seeks Crypto Asset Freeze Powers and DeFi Gateway Rules in MiCA Review
ESMA asked the EU Commission to freeze crime-linked crypto, block fraud sites and bring DeFi gateways under MiCA, as the rulebook's review consultation closed.
Why it matters
MiCA's transition period for existing providers ended no later than July 1, 2026, and ESMA has told national regulators to act against firms still serving EU customers without a licence. Bitpanda co-CEO Christian Trummer said on Cointelegraph's Chain Reaction that MiCA has raised user trust in regulated firms and that weak enforcement leaves licensed firms at a disadvantage. Whether the Commission adopts ESMA's proposed powers, and how it resolves the contested stablecoin reserve and interest rules, will be decided in a review running to June 30, 2027.
Where the sources disagree
Consumer trust in regulated crypto firms under MiCA
Most users have 'more faith' in regulated market participants
Cointelegraph
Claim not accompanied by a specific survey or percentage measuring a rise in consumer trust
TheNewsCrypto
Cointelegraph presents higher user trust as the co-CEO's finding, while TheNewsCrypto notes his comments rested on personal observation with no survey or percentage behind them.
Scope of ESMA's DeFi proposal
Submission addresses emerging models such as DeFi, staking, lending and borrowing
Crypto News (CryptoNews.net)
Front-end interfaces, wallets and other DeFi gateways would fall within MiCA oversight
Bitcoin Insider
Crypto News says the submission addresses emerging models including DeFi without describing gateway coverage, while Bitcoin Insider reports explicit coverage of front-ends, wallets and other access points through two third-party outlets.
Key facts
ESMA asked the European Commission for new powers to freeze crypto assets linked to crime and block fraudulent websites.
Reported by Crypto News (CryptoNews.net)
ESMA proposed stricter rules for crypto-asset marketing, including promotion by influencers and third parties, and greater transparency on costs.
Reported by Crypto News (CryptoNews.net)
ESMA backed proportionate requirements for staking, lending and borrowing, with disclosure of costs, risks, rewards, collateral arrangements and potential losses.
Reported by Crypto News (CryptoNews.net)
Bitcoin Insider, citing Cryptopolitan and UNLOCK Blockchain, reported that ESMA would bring DeFi front-ends, wallets and other access points into MiCA oversight.
Reported by Bitcoin Insider
BTC-ECHO listed Circle, ESMA, the European Banking Authority, Deutsche Börse, AFME, the Hyperliquid Policy Center and Greenfield Capital among the consultation's participants.
Reported by BTC-ECHO
Consultation participants disagreed over whether to keep the ban on paying interest to stablecoin holders.
Disputed figureReported by BTC-ECHO
What happened
ESMA answered the European Commission's consultation on the MiCA review on September 30, asking for powers to freeze crypto assets linked to crime and block fraudulent websites, stricter rules on crypto-asset marketing and more transparency on costs, as Crypto News reported. The same submission backs proportionate requirements for staking, lending and borrowing, with disclosures covering costs, risks, rewards, collateral arrangements and potential losses. Bitcoin Insider, citing Cryptopolitan and UNLOCK Blockchain, reported that ESMA would also bring DeFi front-ends, wallets and other access points into MiCA oversight, and neither of those reports quotes a published ESMA text. BTC-ECHO listed Circle, ESMA, the European Banking Authority, Deutsche Börse, AFME, the Hyperliquid Policy Center and Greenfield Capital among those that filed before the consultation window closed, and reported that stablecoin rules were a central point of contention: several participants criticised the requirement that 30 percent of reserves be held as bank deposits, positions differed on the interest ban, and participants broadly agreed perpetual futures should stay under MiFID. The Commission will weigh the submissions alongside the EBA and ESMA and must report to the European Parliament by June 30, 2027.
How the story developed
- Official statement
ESMA submits its response to the Commission's MiCA review consultation
The submission proposed freeze and blocking powers, marketing and cost-transparency rules, and disclosure duties for staking, lending and borrowing.
- First report
First report by Cointelegraph
A single market worth protecting: Getting the MiCA review right
- Update
Cointelegraph editorial argues the MiCA review should keep the single market while recalibrating compliance burden
The outlet said a CASP authorised in one Member State can now passport across the EU and EEA, and that the consultation on the review was closing.
- Update
Bitcoin Insider reports DeFi access points could fall under MiCA rules
The report attributes the gateway proposal to Cryptopolitan and UNLOCK Blockchain rather than to a published ESMA document.
- Independent corroboration
Independently corroborated by BTC-ECHO
Krypto-Branche fordert Änderungen an MiCA
- Update
BTC-ECHO lists consultation participants and the stablecoin and DeFi disputes
Named filers included Circle, ESMA, the EBA, Deutsche Börse, AFME, the Hyperliquid Policy Center and Greenfield Capital.
- Update
Bitpanda co-CEO says European users trust regulated firms more under MiCA
Christian Trummer called for stricter enforcement against firms serving EU customers without a MiCA licence; TheNewsCrypto noted his trust claim had no survey behind it.
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 30 Sept 2026, 11:00 UTC: Cointelegraph — 1 independent source, 1 reports
- 1 Oct 2026, 09:37 UTC: Bitcoin Insider — 2 independent sources, 2 reports
- 2 Oct 2026, 07:56 UTC: BTC-ECHO — 3 independent sources, 4 reports
- 3 Oct 2026, 07:16 UTC: TheNewsCrypto — 4 independent sources, 6 reports
Affected entities
Also mentioned: United States, United Kingdom
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Cointelegraph Crypto media | A single market worth protecting: Getting the MiCA review right | Original | |
| Cointelegraph Crypto media | European crypto users have ‘more faith’ in regulated firms under MiCA: Bitpanda co-CEO | Independent | |
| BTC-ECHO Crypto media | Krypto-Branche fordert Änderungen an MiCA | Independent | |
| TheNewsCrypto Crypto media | Bitpanda Co-CEO Says European Crypto Users Have More Faith in Regulated Firms Under MiCA | Syndicated | |
| Bitcoin Insider Aggregator | DeFi Access Points Could Fall Under MiCA Rules, ESMA Proposes | Syndicated | |
| Crypto News (CryptoNews.net) Aggregator | ESMA Calls for New Powers to Freeze Crypto Assets and Block Fraud Sites in MiCA Review | Syndicated |
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