ESMA to Expand Crypto and Tech Oversight in 2027
The European Securities and Markets Authority (ESMA) has outlined plans to expand its oversight of crypto-assets, clearing, and technology providers as part of its 2027 work programme. The regulator aims to strengthen financial supervision, simplify regulation, and enhance the use of data and artificial intelligence. ESMA Chair Verena Ross emphasized that 2027 will be a pivotal year for the Savings and Investments Union, with several key initiatives moving into the delivery phase. Ross highlighted the authority's focus on modernizing market supervision through greater reliance on technology and data.
ESMA will broaden its supervisory activities to include consolidated tape providers, external reviewers of European Green Bonds, and ESG rating providers. The authority will also oversee critical ICT third-party service providers and continue monitoring compliance with the Digital Operational Resilience Act (DORA). Additionally, ESMA will review the impact of the recent EMIR 3 reforms to ensure the resilience of EU clearing markets and reduce dependence on external clearing services.
The regulator will also work on aligning supervisory practices across EU member states, particularly in the supervision of crypto-asset service providers under the Markets in Crypto-Assets Regulation (MiCA). ESMA plans to simplify financial markets by reducing administrative burdens, improving regulatory data usability, and making supervision more effective. The authority will also support the implementation of the European Single Access Point and the transition to T+1 settlement, which shortens the standard settlement cycle for securities transactions.
Investor protection remains a priority, with ESMA promoting clearer and more accessible information for investors. The authority will strengthen its data capabilities and deploy AI-based tools to support supervisory work. Crypto-assets, artificial intelligence, and tokenization will remain key focus areas, as ESMA explores the opportunities they present for EU capital markets. The 2027 programme aims to support more efficient and resilient financial markets while keeping investor protection and financial stability at the forefront.