ESMA Launches First MiCA Review of Crypto Custody Providers in Europe

Following MiCA’s transition into full enforcement, ESMA has initiated its inaugural Common Supervisory Action (CSA) targeting crypto-asset service providers (CASPs).

The supervisory initiative will focus on the digital operational resilience of crypto custody services, as regulators assess how firms manage security, risk controls, and operational processes.

Under the review, national authorities will carry out risk-based assessments through 2027, examining areas including governance frameworks, key management practices, transaction controls, incident response procedures, smart contract risks, and reliance on external service providers.

Source: ESMA