ESMA Opens Custody Review Under New MiCA Rules
ESMA opens a custody-focused review of crypto firms after the July 1 MiCA transition deadline. National authorities will check how firms protect client assets.
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European regulators are probing how crypto firms handle client assets. ESMA launched a custody-focused supervisory action on July 2, one day after the MiCA transition window closed.
National competent authorities will carry out the reviews. They will select firms using a risk-based approach, ESMA said in a statement. The examiners will look at how crypto-asset service providers (CASPs) protect customer funds and manage technology risks.
ESMA specifically zeroed in on custody controls. “The CSA will assess the maturity of CASPs’ digital operational resilience frameworks in relation to custody activities,” the regulator said. Key management and storage procedures will be central to the review.
The exercise runs through the first half of 2027. ESMA plans to compare supervisory practices across member states and publish a consolidated report to its Board of Supervisors in late 2027.
NCAs will evaluate governance structures and transaction controls. They will also review how firms detect operational problems, handle service disruptions, and manage reliance on external technology providers.
The review comes as MiCA compliance becomes enforceable. European authorities now face sharper questions about enforcement consistency. ESMA’s coordinated action aims to reduce gaps between national regulators.
Custody providers have been expanding services to meet the new rules. Last month, BitGo launched a Europe-focused crypto-as-a-service platform designed for MiCA compliance, signaling rising demand for regulated custody support.
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