ESMA Shifts Focus to Crypto Supervision Under MiCA

The European Securities and Markets Authority (ESMA) has shifted its focus from rulemaking to supervision under the Markets in Crypto-Assets Regulation (MiCA). ESMA Chair Verena Ross said that the regulator's priority is to ensure innovation flourishes within a clear framework, providing safeguards for investors and confidence in the markets.

In its 2027 work program, ESMA plans to strengthen coordination among national regulators supervising crypto asset service providers (CASPs), with operational resilience and outsourcing risks at the top of the list. The regulator also intends to harmonize CASPs' periodic reporting and promote common risk indicators and supervisory dashboards.

ESMA is advancing its MIDAS system, a centralized crypto-market surveillance tool for monitoring market abuse under MiCA. The first phase of the system is expected to be fully operational in 2027, with analytical features and expanded data types to be added in the fourth quarter subject to board approval.