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ESMA Launches EU-Wide Review of Crypto Custody Providers

  • The European Securities and Markets Authority is launching a common supervisory action targeting the operational resilience of crypto custody providers.
  • National regulators across the EU will conduct risk-based reviews of authorized crypto-asset service providers from now through the first half of 2027.
  • The reviews will assess key and storage management, governance structures, transaction controls, incident detection, and dependencies on external providers.
  • The action follows the end of MiCA’s transition phase on July 1, signaling increased supervisory attention to compliance enforcement.

The European Securities and Markets Authority (ESMA) announced Wednesday it is launching a common supervisory action (CSA) targeting the operational resilience of crypto-asset service providers, with a particular focus on custody services, according to an official announcement. The initiative comes just after the Markets in Crypto-Assets (MiCA) framework’s transition phase ended on July 1.

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“The CSA will assess the maturity of CASPs’ digital operational resilience frameworks in relation to custody activities,” ESMA stated. National competent authorities across the EU will conduct the reviews on a risk-based sample of authorized CASPs.

The reviews will run from now through the first half of 2027, examining key and storage management alongside other operational risks. Regulators will also evaluate governance structures, transaction controls, incident detection and response, and dependencies on external service providers.

ESMA plans to consolidate the findings into a final report submitted to its Board of Supervisors after the exercise concludes in the second half of 2027. The review coincides with custody providers stepping in to support platforms adapting to Europe‘s new regulatory environment.

Last month, crypto custody company BitGo launched a Europe-focused crypto-as-a-service platform aimed at helping platforms maintain market access while working through MiCA-related compliance requirements.

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