Definition ∞ The European Securities Markets Authority, or ESMA, is an independent European Union authority that works to safeguard the stability of the EU’s financial system. ESMA achieves this by ensuring the integrity, transparency, efficiency, and orderly functioning of securities markets. It contributes to a single rulebook for EU financial markets, fostering investor protection and supervisory convergence. Its responsibilities span various financial instruments and market participants.
Context ∞ ESMA plays a pivotal role in shaping the regulatory landscape for digital assets and blockchain technology within the European Union. News frequently reports on ESMA’s guidance and consultations regarding crypto-assets, stablecoins, and tokenized securities. Its involvement is critical for understanding the future direction of crypto regulation and market structure in Europe, particularly concerning investor safeguards and market conduct.