ESMA Warns European Crypto Firms Against Misusing MiCA Status in Marketing

The European Securities and Markets Authority (ESMA) has issued a sharp warning to crypto companies across the European Union (EU). ESMA has cautioned companies against using their regulatory status under the Markets in Crypto-Assets (MiCA) framework as a promotional tactic. Some companies were using their MiCA status as a marketing gimmick to attract investors and mislead them.

ESMA Gives Stern Warning Against Misuse of MiCA Status

In a public statement released Friday, ESMA emphasized that while some crypto asset service providers (CASPs) are now authorized under MiCA, this does not mean all of their products and services are necessarily regulated. The authority expressed concern that firms may exploit the newly granted MiCA status to create a false impression of safety and regulatory oversight across their entire operations.

“Some CASPs may even use their regulated status under MiCA as a marketing argument and encourage confusion between regulated and unregulated products and services,” the ESMA noted, highlighting a potential risk of investor misunderstanding.

MiCA, which came into effect earlier this year, is designed to strengthen consumer protection and ensure the integrity of the crypto market within the EU. The law sets out clear requirements for how client assets are stored, how complaints are handled, and mandates that firms must obtain a CASP license from a national regulator to operate legally within the bloc.

However, Friday’s warning suggests that regulatory status is being selectively used by some crypto firms to promote trust, while parts of their offerings may still fall outside the scope of MiCA protections.

The watchdog’s alert follows a critical peer review of Malta’s Financial Services Authority (MFSA), which highlighted the regulator's shortcomings in the crypto licensing process. Although Malta was praised for having the expertise and resources for supervision, ESMA found that its approach to granting crypto authorizations only “partially” met EU standards. This raises broader concerns about uneven regulatory enforcement across member states.

As crypto adoption grows and firms rush to align with MiCA to gain credibility, ESMA is urging national regulators to enforce the rules uniformly and remain vigilant against promotional misuse. For EU consumers and investors, the message is clear. A MiCA license does not automatically ensure that every product offered by a crypto firm is safe, regulated, or protected.