The European Union is transitioning the implementation of the MiCA regulation from rule development to oversight of compliance and harmonization of practices among national regulators. This was announced by Verena Ross, the head of the European Securities and Markets Authority (ESMA).
“Our focus within MiCA has shifted […] towards aligning supervisory practices,” Ross stated.
On September 28, ESMA unveiled its work program for 2027. A key priority outlined is the coordination of national regulators in monitoring crypto asset service providers (CASPs).
The regulator aims to emphasize the operational resilience of companies, outsourcing, liquidity, classification of crypto assets, and uniform application of regulations across EU member states.
One area of focus will be the control of the reverse solicitation mechanism, which allows a company from a third country to service a European client without a MiCA license, provided the client initiated the request independently.
Article 61 of MiCA specifies that this exemption does not apply if the foreign company actively solicits clients in the EU through advertising or other means. ESMA has previously stressed that this mechanism should be interpreted narrowly and cannot be used to circumvent regulations.
ESMA will also pay close attention to the actual presence of crypto companies within the EU. According to Article 59 of MiCA, licensed CASPs must have a registered office in an EU country, conduct at least part of their operations in the EU, maintain a real management center there, and have at least one resident director.
ESMA to Enhance Crypto Market Monitoring
In 2027, the agency will continue to unify the practices of national regulators and develop a comprehensive supervisory infrastructure. The ESMA program indicates that by this time, the first phase of the integrated MiCA monitoring system should be fully operational.
This platform will enable 26 national competent authorities to use a unified ESMA tool for daily monitoring and oversight of the crypto market. The regulator also plans to enhance centralized data and technological tools for risk analysis.
Simultaneously, ESMA will maintain oversight of compliance with market integrity requirements. In April 2025, the agency published guidelines for national regulators to identify and prevent abuses in the crypto market, taking into account its cross-border nature and the role of social media.
In July 2026, ESMA initiated a separate review of the operational resilience of crypto custodians. National regulators are expected to assess key management and asset storage, transaction monitoring, incident handling, smart contract risks, and dependence on third-party providers.
MiCA Has Entered Full Implementation Phase
As of July 1, 2026, the transition period for MiCA concerning crypto companies in the EU has concluded. After this date, service providers without the necessary authorization must cease operations for European clients.
The end of the transition period marks the next step in implementing MiCA, with oversight of already licensed companies taking precedence. In its 2026 program, ESMA indicated that it would focus not only on the issuance of licenses but also on monitoring CASPs and aligning national regulatory practices.
At the same time, European regulators are discussing the potential expansion of MiCA’s scope. On September 24, the European Banking Authority proposed considering the inclusion of crypto lending and borrowing, including services through which centralized companies provide clients access to DeFi protocols. Potential measures include leverage restrictions, additional disclosure requirements, and client suitability checks.
It is worth noting that in July, the European Parliament approved a political stance on further regulation of digital assets, including DeFi, NFTs, staking, and other segments that the current version of MiCA only partially or does not directly regulate.
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