This week, France sought ESMA oversight to fix EU crypto license flaws, the UAE stepped up action against global crypto crime, and a Canadian teen hacker reoffended while on bail. These stories highlight regulatory gaps, the urgent need for stronger safeguards worldwide, and the fluid nature of crypto theft.
France joins Italy and Austria in bid for ESMA supervision of MiCA
On September 14, France joined Italy and Austria in calling for ESMA to take over the supervision of major crypto firms within the EU.
Pointing to gaps in MiCA regulation and specifically the rules around passporting, France warned that inadequate oversight of the multi-trillion-dollar crypto industry could destabilize markets and harm investors.
France also indicated it may try to block some crypto firms licensed in other EU countries as part of a push for ESMA to take over the supervision of major crypto firms.
Marie-Anne Barbat-Layani, head of France’s financial regulator, the AMF, said crypto platforms are “doing crypto shopping all over Europe, trying to find the weak link that will license them with fewer requirements.”
A spokesperson for ESMA referred to a paper published last year that encouraged lawmakers to consider pan-European supervision for the crypto licensing sector.
Why this matters:
France, Italy, and Austria want ESMA to supervise major crypto firms directly, warning that inconsistent regulation from country to country can risk market instability and investor harm. For EU compliance teams, this means stricter, standardized oversight, and higher expectations for KYC, AML, and risk-management alignment across jurisdictions.
Learn more at Reuters.
UAE steps up global crypto crime fight
Officials from the UAE’s Ministry of Interior took part in the International Cryptocurrency Security Action Week in Singapore, which brought together global law enforcement and regulators, hosted by the Secure Communities Forum and Mastercard. Partners included UNODC, INTERPOL, the US IRS, and major tech firms.
The event centered on advanced methods for tracking fraud and money laundering, fighting dark web crime, and enhancing cooperation between exchanges, analytics providers, and law enforcement. The UAE also showcased its broader digital asset strategy, including plans to introduce a Digital Dirham in 2025 and Dubai’s $16 billion real estate tokenization initiative.
Why this matters:
The UAE’s active role highlights the increasing push for global coordination against crypto-enabled crime. For compliance teams and regulators, this signals higher expectations for cross-border information sharing, closer ties between public and private actors, and stronger pressure to apply due diligence when investigating financial crime risks.
Learn more at Gulf News.
Crypto hacker reoffends while on bail
A Canadian hacker from Hamilton, Ontario, has been sentenced in the US to one year in prison after stealing more than $725,000 in a 2022 scam targeting 200 victims – crimes he committed while already on bail.
The 17-year-old hacker previously stole $34.8M from a US individual in 2020 through a SIM swap crypto theft. At that time the US courts treated him leniently as a and he was released on bail after a year’s pre-trial custody for the initial crime.
In 2022, he devised the second scam while living alone in his father’s basement in the States. He would persuade X representatives to give him access to hugely popular X accounts, where he’d post links to his own fake websites and gain access to the crypto wallets of around 200 unsuspecting X users. At his trial for the original crime, he said, “I’ve truly taken this time to reflect on my actions and learn from my mistakes. I intend to move forward only in a positive direction.”
Why this matters:
This case highlights how bail and weak pretrial restrictions can enable repeat crypto crimes. It raises urgent questions about regulatory oversight, judicial safeguards, and how to prevent criminals from exploiting legal loopholes to commit further large-scale thefts.
Learn more at Yahoo.
