The European Securities and Markets Authority (ESMA) has launched a program to inspect digital asset service providers (CASP), focusing specifically on custodial services.
As part of this initiative, national competent authorities will evaluate how companies manage operational risks associated with cryptocurrency storage. The emphasis will be on the digital operational resilience of custodians.
ESMA will pay particular attention to risks related to distributed ledger technology. The assessment will examine how CASPs manage:
- management and control;
- key and storage management;
- transaction monitoring;
- incident detection and handling;
- smart contract risk management;
- dependencies on third-party providers.
The review will be conducted on a risk-oriented sample of authorized CASPs, scheduled from the second half of 2026 to the first half of 2027.
Upon completion of the program, ESMA will compile the results into a final report and submit it to the supervisory board.
It’s worth noting that the transition period for cryptocurrency platforms under the MiCA regulation ended in the EU on July 1. The European Parliament has already approved an official stance on further expanding regulation in the industry, including DeFi, lending, staking, and NFTs.