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ESMA Cracks Down on Unregulated Crypto Firms

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The European Securities and Markets Authority (ESMA) has outlined its priorities for crypto supervision in 2027, shifting its focus from rulemaking to enforcement. According to ESMA's annual work program, operational resilience, outsourcing controls, and whether firms maintain genuine operations inside the EU are top concerns.

Out of 1,343 crypto service providers operating across the European Economic Area, only 281 had secured MiCA authorization after the deadline in July. Unlicensed firms carried higher risk ratings than authorized ones, with $5 billion sent to sanctioned counterparties.

ESMA plans to standardize how oversight information is collected and used across the EU, aiming for harmonized reporting and market surveillance through its centralized system MIDAS. The regulator's priorities will feed into the European Commission's review of MiCA, expected by June 2027.

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