ESMA Shifts Focus to Crypto Supervision Under MiCA

The European Securities and Markets Authority (ESMA) has shifted its focus from rulemaking to supervision of national crypto regulation, according to ESMA Chair Verena Ross. The regulator will prioritize operational resilience, outsourcing risks, and firms maintaining sufficient operations within the bloc in 2027 under the Markets in Crypto-Assets Regulation (MiCA).

ESMA's priorities for 2027 were outlined in its work program published Monday. The regulator plans to strengthen coordination among national regulators supervising crypto asset service providers (CASPs) and harmonize their periodic reporting. ESMA will also advance MIDAS, a centralized surveillance system for monitoring market abuse under MiCA.

ESMA expects the first phase of MIDAS to be fully operational in 2027. The regulator previously disclosed plans for a second phase, which will add analytical features and expand the types of data available, with rollout scheduled for the fourth quarter subject to board approval.