Where the competent authority of a host Member State has clear and demonstrable grounds to suspect irregularities in the activities of an offeror or person seeking admission to trading of crypto-assets, an issuer of an asset‑referenced token or e‑money token, or a crypto‑asset service provider, it shall notify the competent authority of the home Member State and ESMA. Where those irregularities concern an issuer of an asset‑referenced token or e‑money token, or a crypto‑asset service related to such tokens, the competent authority of the host Member State shall also notify EBA.

Where irregularities persist despite measures by the home competent authority and amount to an infringement, the host competent authority, after informing the home authority, ESMA and, where appropriate, EBA, shall take appropriate measures to protect clients and holders, in particular retail holders, including preventing further activities in the host Member State, and inform ESMA and, where appropriate, EBA without undue delay; ESMA and EBA shall inform the Commission. If the home competent authority disagrees with measures taken by the host authority it may bring the matter to ESMA under Article 19(4) of Regulation (EU) No 1095/2010; by way of derogation, where measures concern asset‑referenced or e‑money tokens or related services the host authority may bring the matter to EBA under Article 19(4) of Regulation (EU) No 1093/2010.