ESMA turns spotlight on crypto custody risks after MiCA transition

Written by Helen Partzstaff writerReviewed by Yohan Yunstaff writerWritten by Helen Partzstaff writerReviewed by Yohan Yunstaff writerESMA turns spotlight on crypto custody risks after MiCA transitionLatest NewsPublishedJul 8, 2026The EU securities regulator will assess custody providers’ key management, incident response and reliance on third-party technology providers.The European Securities and Markets Authority (ESMA), a key EU regulator supporting the implementation of the Markets in Crypto-Assets (MiCA) framework, is launching a dedicated process for reviewing crypto custody providers.ESMA plans to conduct a common supervisory action (CSA) focused on the operational resilience of crypto-asset service providers (CASPs), with a specific emphasis on custody services, according to an official announcement on Wednesday.“The CSA will assess the maturity of CASPs’ digital operational resilience frameworks in relation to custody activities,” ESMA said, adding that the reviews will focus on areas including key and storage management, alongside other operational risks.The move comes shortly after the end of MiCA’s transition phase on July 1, prompting increased attention to how EU authorities will supervise compliance with the new framework, including potential enforcement questions.National regulators to conduct custody reviewsESMA said the supervisory action will be conducted by national competent authorities (NCAs) across the EU, which will assess a risk-based sample of authorized CASPs.The reviews will run from now through the first half of 2027, with regulators examining how companies handle custody-related operational risks.In addition to reviewing key and storage management, NCAs are expected to assess areas such as governance structures, transaction controls, incident detection and response, and dependencies on external service providers.Related: Belgian regulator flags 6 unauthorized crypto providers after MiCA deadlineESMA will later consolidate the finding…

ESMA turns spotlight on crypto custody risks after MiCA transition

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