EU Regulator Launches Review Of Crypto Custody Providers Under MiCA

The European Securities and Markets Authority is launching a dedicated supervisory review of crypto custody providers, focusing on operational resilience shortly after the transition phase of the EU’s Markets in Crypto Assets framework came to an end.

Review Targets Key Management And Risk Controls

ESMA announced Wednesday that it will conduct a common supervisory action assessing how crypto-asset service providers manage digital operational resilience, particularly around custody services. The review will examine key and storage management practices along with other operational risk areas tied to safeguarding client assets.

National Regulators To Lead Assessments

The reviews will be carried out by national competent authorities across EU member states, targeting a risk-based sample of authorized crypto firms. Beyond storage and key management, regulators will evaluate governance structures, transaction controls, incident detection and response procedures, and firms’ reliance on external technology providers. The process will run from now through the first half of 2027.

Findings Expected By Late 2027

ESMA plans to compile results from the national reviews into a consolidated report for its Board of Supervisors once the exercise wraps up in the second half of 2027. The initiative follows the July 1 end of MiCA’s transition period, a milestone that has raised questions about how strictly the new framework will be enforced. Some custody providers have already begun adjusting to the shift, with BitGo launching a Europe-focused service last month to help platforms maintain market access during the compliance transition.