TLDR ESMA launched a common supervisory action focused on crypto custody providers after MiCA’s transition phase ended on July 1. National competent authorities will review a risk-based sampl
ESMA has opened a custody-focused review of crypto firms after the MiCA transition ended on July 1. The regulator wants stronger oversight of operational risks across authorized crypto-asset service providers. The action also shows how EU supervision may test MiCA compliance in practice.
ESMA announced a common supervisory action focused on crypto custody services across the European Union. National competent authorities will lead the reviews and select authorized firms through a risk-based approach. The process will examine how CASPs protect client assets and manage technology risks.
“The CSA will assess the maturity of CASPs’ digital operational resilience frameworks in relation to custody activities,” ESMA said. The regulator also named key and storage management as central review areas. These functions matter because custody firms control access to client crypto assets.
The review will run through the first half of 2027. Therefore, supervisors will have time to assess systems, controls, and firm-level risk management. ESMA will use the exercise to compare supervisory practices under MiCA rules.
The review follows the end of the MiCA transition phase on July 1. As a result, EU authorities now face sharper questions over compliance and enforcement. ESMA’s action gives regulators a coordinated method for checking custody standards.
NCAs will assess governance structures, transaction controls, and incident response processes. They will also review how CASPs detect operational problems and handle service disruptions. Moreover, supervisors will examine reliance on external technology and service providers.
The MiCA regime places crypto firms under clearer EU-wide standards. However, national authorities still carry much of the direct supervisory work. ESMA’s coordinated review aims to reduce gaps between member states and improve consistent oversight.
ESMA expects the custody review to continue until the first half of 2027. After that, the regulator will consolidate the findings into a final report. It will then present the report to its Board of Supervisors in late 2027.
The action also comes as custody providers expand services for regulated crypto platforms. Last month, BitGo launched a Europe-focused crypto-as-a-service platform for firms handling MiCA-related compliance. The launch showed rising demand for custody support during the regulatory shift.
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