The European Union’s top financial regulator, ESMA (European Securities and Markets Authority), has stirred the crypto waters again — this time proposing a potential ban on crypto staking services for retail investors.
This move, presented in a recently published consultation paper, is aimed at minimizing financial risks for non-professional investors and ensuring regulatory alignment across the EU’s upcoming MiCA (Markets in Crypto Assets) framework.
According to ESMA:
“Crypto-asset service providers should not offer staking or lending services to retail investors due to inherent risks and complexities.”
This proposed restriction, if implemented, could reshape how platforms like Binance, Coinbase, and Kraken serve their EU retail clients.
Why It Matters:
- Staking is one of the most popular yield strategies in crypto, especially for assets like Ethereum, Solana, and Cardano.
- Retail users might lose access to passive income streams they currently rely on.
- The EU is making a bold move to regulate DeFi-like functionalities, bringing them under stricter financial oversight.
What’s Next?
Public feedback is open until October 2025, after which ESMA may formalize the rule. Exchanges and wallet providers are already evaluating potential compliance strategies and alternative staking models.
- Read also: Crypto Regulations in 2025 – What to Expect
Want to stay ahead with self-custody while the rules change?
✔️ Secure your crypto with Ledger Nano X
✔️ Start trading on Binance – earn while you learn