ESMA Shifts Focus to Supervising Crypto Under MiCA

ESMA Chair Verena Ross announced that the European Securities and Markets Authority will focus on supervising crypto asset service providers under the Markets in Crypto-Assets Regulation (MiCA) in 2027. The regulator's priorities include operational resilience, outsourcing risks, liquidity, reverse solicitation, and asset classification.

According to Ross, ESMA's attention has shifted from rulemaking to supervision and convergence under MiCA. 'We want innovation to flourish within a framework that provides clarity for firms, safeguards for investors and confidence in the markets,' she said during a meeting of the European Parliament's Committee on Economic and Monetary Affairs.

ESMA plans to strengthen coordination among national regulators supervising crypto asset service providers (CASPs) and harmonize their periodic reporting. The regulator also aims to advance its MIDAS system, which will monitor potential market abuse under MiCA. ESMA expects the first phase of the system to be fully operational in 2027.

The European Commission's review of MiCA is expected by June 2027, and ESMA plans to feed its supervisory experience into this process. The regulator also anticipates any legislative proposal that may follow.