ESMA Shifts Focus from Rulemaking to Supervision Under MiCA

As the Markets in Crypto-Assets Regulation (MiCA) moves from drafting to implementation, ESMA has outlined its plans for overseeing crypto-asset rules across the EU. The regulator's focus is shifting from rulemaking towards supervision and convergence, with a priority on investor protection and market confidence.

ESMA Chair Verena Ross emphasized that the regulator wants innovation to 'flourish' within a clear structure that safeguards investors. To achieve this, ESMA plans to standardize how oversight information is collected and used, including harmonizing CASPs' periodic reporting and developing common risk indicators and supervisory dashboards.

The regulator's 2027 work programme highlights operational resilience and outsourcing risks as key areas for crypto asset service provider (CASP) supervision. ESMA also plans to strengthen coordination among national regulators, aiming to reduce compliance gaps between them. The emphasis on convergence is aimed at limiting variation in supervisory outcomes across EU member states.

MIDAS, ESMA's centralized system for monitoring potential market abuse, is expected to reach full operational readiness in 2027. The system will also undergo enhancements, including additional analytical features and expanded data types. ESMA plans to feed its supervisory findings into the European Commission's MiCA review, which is expected by June 2027.