ESMA

MetaMask

2026-10-01 14:01:38

MetaMask says it is exiting affected validator nodes after infrastructure incident, with no sign of wallet or fund impact

MetaMask said it is taking affected validator nodes out of its non-custodial staking service after a previously disclosed infrastructure security incident, adding that its investigation has so far found no sign that user wallets or customer funds were affected. The company said it is working with partners on containment steps and urged users to ignore unsolicited messages and never share a seed phrase or private key, noting that MetaMask will not ask for a recovery phrase. The same WuBlockchain digest also covered several policy and market developments. In the U.S., initial jobless claims for the week ending Sept. 26 came in at 197,000, below the 200,000 consensus, while the prior reading was revised to 198,000 from 197,000. In Europe, the European Securities and Markets Authority proposed changes under the Markets in Crypto-Assets framework that would create a new regulated category for firms providing user access to DeFi protocols, while tightening disclosure and compliance standards for staking and crypto lending and borrowing. Separately, Citigroup raised its 12-month targets for Bitcoin and Ether to $113,000 and $3,028. A federal judge in New York also rejected claims by nine alleged fraud victims seeking rights over about 127,271 seized BTC tied by the U.S. Department of Justice to allegations involving Cambodia’s Prince Holding Group and its chairman Chen Zhi.

Hyperliquid

2026-10-01 12:25:40

Hyperliquid policy group submits MiCA feedback to the EU, calls for a technology-neutral approach

Hyperliquid Policy Committee, or HPC, said on Oct. 1 that it had submitted feedback to the European Commission’s targeted consultation on the evolution of the Markets in Crypto-Assets framework, known as MiCA. The filing marks the committee’s first policy submission outside the United States. In its response, HPC argued that the European Union should calibrate existing financial rules rather than rebuild the regulatory framework from scratch. It said crypto asset oversight should follow principles of technology neutrality and economic substance when classifying products. The group also proposed that onchain perpetual contracts be brought under the traditional financial instruments regime of MiFID II through existing guidance from the European Securities and Markets Authority, or ESMA, without new legislation. HPC added that perpetual contracts, which rely on public central limit order book matching, differ from traditional contracts for difference, or CFDs, that involve market-maker risk warehousing. On that basis, it said strict retail restrictions designed for CFDs should not be applied mechanically. The committee also urged regulators to recognize the public and verifiable nature of blockchain data, remove duplicative reporting requirements for information already available onchain, and preserve EU investors’ access to global liquidity.

European Unio

2026-10-01 06:34:19

EU regulators probe whether Binance used MiCA reverse solicitation to bypass licensing

European regulators are examining whether Binance continued serving users in the European Union without the required authorization by relying on the "reverse solicitation" provision under the Markets in Crypto-Assets framework, or MiCA. The review centers on whether the exchange, described in the report as the world’s largest crypto trading platform, used that rule to keep offering services in the bloc despite not holding the necessary license. The European Securities and Markets Authority, or ESMA, is among the bodies involved in the scrutiny. The update was carried by Techub News, citing CoinPedia. No further details on the scope of the review, the jurisdictions involved, or any potential enforcement steps were disclosed in the source digest.

ESMA

2026-10-01 05:35:03

ESMA sets digital innovation as a new supervisory priority from 2027, with AI and tokenization in focus

The European Securities and Markets Authority said it will introduce a new Union Strategic Supervisory Priority, or USSP, from 2027 centered on digital innovation. The first areas of attention will be how regulated entities use artificial intelligence and tokenization. ESMA said the move is meant to make sure supervisors have the expertise and capacity needed to oversee emerging technologies. The digital innovation priority will run alongside the cyber and operational resilience USSP that takes effect in 2025. ESMA also said it will work with national competent authorities and keep the framework flexible enough to respond to future technological developments, including challenges linked to advanced models such as frontier AI. As the EU’s financial markets regulator, ESMA uses USSPs as a convergence tool for high-risk areas of strategic importance across the bloc, directing supervisory resources toward risks most relevant to investor protection, financial stability, and the orderly functioning of EU financial markets.

ESMA

2026-10-01 05:36:14

ESMA and India’s SEBI sign MoU on oversight of central counterparties

The European Securities and Markets Authority, or ESMA, has signed a memorandum of understanding with the Securities and Exchange Board of India, or SEBI, to support cooperation and information sharing on the recognition and supervision of Indian central counterparties (CCPs). The agreement adds to an earlier MoU signed this year between ESMA and the Reserve Bank of India and is aimed at restoring access by EU clearing members to Indian CCPs. Under the arrangement, CCPs established in India and supervised by SEBI will be able to reapply for ESMA recognition under the European Market Infrastructure Regulation, or EMIR. ESMA also said it will keep talking with the International Financial Services Centres Authority, or IFSCA, in an effort to reach a similar cooperation arrangement.

ESMA

2026-10-01 05:35:41

ESMA flags crypto market fragility in its second risk monitoring report for 2026

The European Securities and Markets Authority on Thursday released its second risk monitoring report for 2026, outlining the main risks and vulnerabilities facing European Union financial markets. The watchdog said markets have remained resilient, but that resilience is being tested by persistent inflation, weak economic growth, elevated technology valuations, and rising geopolitical tensions. Beyond listed markets, ESMA said investors should also watch other pockets of risk, including exposure to private credit tied to the U.S. market and the growing links between crypto-asset markets and the broader financial system. The report described the crypto market as increasingly fragile. ESMA Chair Verena Ross said investor optimism continues to support high valuations, but warned that the wider the gap becomes, the greater the risk of a sudden market correction. The report also examined selected themes including trends in U.S. technology IPOs and prediction markets.

Binance

2026-10-01 04:15:54

EU regulators question whether Binance used reverse solicitation to keep serving clients after MiCA setback

Binance is facing scrutiny in the European Union after reportedly continuing to serve some EU clients through the "reverse solicitation" exemption after failing to secure a Markets in Crypto-Assets (MiCA) license this summer, according to the Financial Times. The review involves the European Securities and Markets Authority (ESMA) as well as regulators in France, Germany, and Greece, with some authorities already requesting information from the exchange. The issue centers on whether Binance’s activity fits within the narrow scope of the exemption. Under MiCA, unauthorized crypto service providers are in principle required to stop serving EU clients once the transition period ends. That transition period expired on July 1, 2026. Regulators are now examining whether Binance’s explanation meets the legal threshold for reverse solicitation. If authorities find the exchange’s interpretation unsatisfactory, enforcement action could follow, including fines. ESMA has said clearly that the reverse solicitation exemption should be used in a "very narrow" way and must not become a route to bypass MiCA.

ESMA

2026-09-30 17:27:11

ESMA proposes MiCA rules for DeFi gateways, staking and lending

The European Securities and Markets Authority, or ESMA, has proposed MiCA-related rules covering DeFi gateways, staking, and lending services. The regulator also wants crypto firms barred from offering any MiCA-licensable services tied to noncompliant stablecoins. The scope of those restrictions would extend beyond trading-related activity to include custody and transfers. According to TheDefiant, the proposal focuses on how crypto businesses operating in Europe should draw compliance lines under the Markets in Crypto-Assets framework. The measures outlined in the report center on DeFi access points and service categories that could fall within regulated activity, while also tightening treatment of stablecoins that do not meet compliance requirements.