SKN | ESMA Shifts MiCA Focus From Rulemaking to Crypto Supervision

Key Points:

• ESMA Chair Verena Ross said the regulator’s MiCA priorities are shifting from rulemaking toward supervision and convergence across EU member states.
• ESMA will focus on CASP operational resilience, outsourcing risks, liquidity, reverse solicitation and firms maintaining sufficient operations within the European Union.
• The regulator plans to harmonize reporting, expand its MIDAS crypto-market surveillance system and contribute to the European Commission’s MiCA review in 2027.

ESMA Moves Into MiCA Supervision Phase

The European Securities and Markets Authority is shifting its focus under the Markets in Crypto-Assets Regulation from developing the regulatory framework toward supervising how the rules are applied across the European Union.

ESMA Chair Verena Ross said Monday that the regulator’s MiCA work was moving “from rulemaking towards supervision and convergence” as implementation deepens.

“We want innovation to flourish within a framework that provides clarity for firms, safeguards for investors and confidence in the markets,” Ross said during a meeting of the European Parliament’s Committee on Economic and Monetary Affairs.

The change in emphasis reflects the next phase of MiCA implementation, with ESMA seeking greater consistency among national regulators overseeing crypto-asset service providers.

CASP Resilience and Outsourcing in Focus

ESMA’s 2027 work program identifies operational resilience and outsourcing as key areas for supervision of crypto-asset service providers, or CASPs.

The regulator also plans to examine liquidity, reverse solicitation and asset classification as part of its coordinated supervisory approach.

Operational resilience is particularly relevant as crypto firms increasingly rely on external technology providers and other third-party infrastructure. ESMA’s supervisory work will examine how those dependencies affect the ability of CASPs to maintain their operations and manage risks.

The regulator also plans to pay closer attention to whether firms conducting crypto businesses in the EU maintain sufficient operations within the bloc.

Reporting to Become More Harmonized

ESMA plans to improve consistency in how CASPs report information to national regulators.

The authority intends to harmonize periodic reporting requirements while promoting common risk indicators and supervisory dashboards. The objective is to give national authorities more comparable information and strengthen coordination across member states.

The approach could also make it easier for supervisors to identify emerging risks across the European crypto market rather than assessing firms through fragmented national reporting systems.

MIDAS Surveillance System Expands

Market surveillance will be another major component of ESMA’s 2027 priorities.

The regulator plans to advance MIDAS, its centralized system for monitoring crypto markets and identifying potential market abuse under MiCA.

ESMA expects the first phase of MIDAS to be fully operational in 2027. The authority also plans to add analytical capabilities and expand the range of data available to supervisors, with a further rollout targeted for the fourth quarter subject to board approval.

The surveillance infrastructure is intended to provide regulators with a more coordinated view of trading activity across European crypto markets.

MiCA Review Expected in 2027

ESMA will also use its supervisory experience to contribute to the European Commission’s review of MiCA, which is expected by June 2027.

The regulator plans to provide feedback from its implementation and supervisory work and prepare for any legislative proposals that could follow the review.

That creates a feedback loop between the practical application of MiCA and potential changes to the regulatory framework. Areas that generate supervisory concerns could therefore become part of the next stage of European crypto legislation.

Outlook

ESMA’s 2027 priorities indicate that the European crypto regulatory agenda is moving into a more operational phase, with greater emphasis on consistent supervision, risk monitoring and market surveillance. As national authorities apply MiCA across the bloc, harmonized reporting and systems such as MIDAS are expected to play a larger role in identifying risks and improving regulatory coordination.