The European Securities and Markets Authority (ESMA) is shifting its focus from developing the MiCA regulatory framework to supervising its implementation and harmonizing regulatory practices across the European Union.
ESMA Chair Verena Ross said at a meeting of the European Parliament’s Committee on Economic and Monetary Affairs (ECON) that the regulator’s work under the Markets in Crypto-Assets Regulation (MiCA) is moving “from rulemaking to supervision and convergence.”
According to Ross, ESMA plans to strengthen coordination among national regulators overseeing crypto-asset service providers (CASPs) in 2027. Key areas of supervision will include:
- CASPs’ operational resilience;
- outsourcing risks;
- liquidity management;
- crypto-asset classification;
- compliance with reverse solicitation requirements;
- whether companies maintain sufficient operational presence in the EU.
Another priority will be harmonizing CASPs’ periodic reporting to national supervisory authorities. ESMA plans to introduce common risk indicators and supervisory dashboards to reduce differences in how MiCA is applied across EU jurisdictions.
The regulator is also developing MIDAS, a centralized crypto market monitoring system designed to identify potential cases of market abuse under MiCA. ESMA expects the system’s first phase to be fully operational in 2027.
The second phase of MIDAS is expected to expand the system’s available datasets and analytical capabilities. Its rollout is scheduled for Q4 2027, subject to approval by ESMA’s Board of Supervisors.
ESMA views EU-wide supervision as a way to reduce the risk of regulatory arbitrage and differences in how national authorities apply MiCA. The regulator plans to draw on its supervisory experience during the European Commission’s review of MiCA, scheduled for June 2027. ESMA also plans to prepare for potential legislative changes resulting from that process.
The increased focus on supervision comes as policymakers discuss further centralization of EU crypto market regulation. European Commission proposals call for giving ESMA direct supervisory powers over CASPs.
