The EU is shifting its MiCA regulation focus to compliance oversight for crypto firms, aiming for harmonization among national regulators.
The European Union is shifting its focus regarding the Markets in Crypto-Assets (MiCA) regulation from developing rules to ensuring compliance among national regulators. Verena Ross, head of the European Securities and Markets Authority (ESMA), highlighted this change in direction.
“Our focus within MiCA has shifted […] towards aligning supervisory practices,” Ross stated.
On September 28, ESMA introduced its work program for 2027, which prioritizes the coordination of national regulators in overseeing crypto asset service providers (CASPs). This effort aims to enhance operational resilience, outsourcing practices, liquidity management, and the uniform application of regulations across EU member states.
A significant aspect of this oversight will involve the reverse solicitation mechanism. This allows non-EU companies to offer services to European clients without a MiCA license, provided the clients initiate the contact themselves. However, Article 61 of MiCA clarifies that this exemption is void if foreign companies actively solicit EU clients through advertisements or other methods. ESMA has emphasized that this mechanism should be interpreted restrictively to prevent regulatory evasion.
Furthermore, ESMA will scrutinize the actual presence of crypto firms in the EU, as Article 59 of MiCA mandates that licensed CASPs must have a registered office in an EU country and conduct part of their operations there, including having a resident director.
Strengthening Crypto Market Oversight
By 2027, ESMA plans to unify the practices of national regulators and establish a robust supervisory framework. The agency's program indicates that the first phase of a comprehensive MiCA monitoring system should be operational by then, allowing 26 national authorities to utilize a standardized tool for daily crypto market oversight.
In addition to compliance monitoring, ESMA aims to enhance centralized data and technological resources for risk assessment. The agency has also set guidelines to help national regulators identify and mitigate abuses in the crypto market, paying particular attention to its cross-border characteristics and the influence of social media.
In July 2026, ESMA began a review focused on the operational resilience of crypto custodians, with national regulators tasked to evaluate key management practices, asset storage security, transaction monitoring, and risks associated with third-party dependencies.
MiCA Implementation Moves Forward
The transition period for implementing MiCA regarding crypto companies concluded on July 1, 2026. After this date, any service providers lacking the necessary authorization must stop serving European clients. This transition marks a significant step in MiCA's implementation, with an emphasis on monitoring licensed companies and aligning national regulatory practices.
Additionally, discussions are underway regarding the potential expansion of MiCA's scope. On September 24, the European Banking Authority proposed considering the regulation of crypto lending and borrowing, including services that facilitate access to decentralized finance (DeFi) protocols. Proposed measures could include leverage restrictions, additional disclosure requirements, and client suitability assessments.
In July, the European Parliament also expressed support for further regulations on digital assets, including DeFi, NFTs, and staking, areas that are currently only partially addressed in the existing MiCA framework.
