The European Securities and Markets Authority (ESMA) has started a Europe-wide review of crypto custody providers under the MiCA framework. This review will check if licensed crypto firms are protecting customer assets and staying resilient as digital assets become more popular in the EU. National regulators will inspect selected Crypto-Asset Service Providers (CASPs) from the second half of 2026 to the first half of 2027, after which ESMA will share its findings.
Instead of making new rules, ESMA’s latest effort is about making sure firms follow the safeguards already set by MiCA. This review is another step in Europe’s move from just creating crypto rules to actively supervising how licensed firms work day to day.
Regulators in EU member states will look at how selected crypto companies handle custody operations. The review will focus on areas like governance, risk management, how private keys are created and stored, how transactions are approved, incident response, smart contract risks, third-party tech providers, and risks linked to distributed ledger technology (DLT).
Source: esma.europa.eu
ESMA says strong custody practices are more important than ever as more institutions get involved in digital assets. Keeping customer assets safe is a key responsibility for licensed crypto service providers, especially as bigger investors join the market.
The custody review is part of a wider effort to tighten crypto oversight in Europe. Earlier this month, ESMA warned that some crypto event contracts might be covered by the EU’s financial instruments rules, which could limit certain prediction market products for regular investors.
At the same time, the EU is getting ready to roll out its Anti-Money Laundering Regulation (AMLR), which will bring stricter rules for crypto firms starting in 2027. The new rules will ban anonymous crypto accounts and require stronger customer checks, transaction monitoring, and reporting.
Taken together, MiCA, AMLR, and ESMA’s new efforts show that European regulators are moving from just licensing crypto companies to closely watching their daily operations. The results of the custody review will likely guide future supervision and enforcement as Europe’s digital asset market grows.
JUST IN: ESMA launches first coordinated crypto custody review after MiCA enters full enforcement
The European Securities and Markets Authority (ESMA) has launched its first Common Supervisory Action (CSA) on crypto-asset service providers (CASPs) since MiCA entered full… pic.twitter.com/n4s3DwsprY
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