MiCA focus shifts from rulemaking to supervision, ESMA chair says

The European Securities and Markets Authority (ESMA) has officially transitioned its primary focus from MiCA rulemaking to active supervision and regulatory convergence. According to Chair Verena Ross, the 2027 work program prioritizes operational resilience, outsourcing risks, and ensuring crypto-asset service providers (CASPs) maintain substantial operations within the European Union. ESMA aims to harmonize periodic reporting requirements across national regulators while implementing common risk indicators and supervisory dashboards. A central component of this strategy is the MIDAS surveillance system, designed to monitor for market abuse, with its first phase expected to be fully operational by 2027. The regulator also plans to expand the analytical capabilities of MIDAS by the fourth quarter of 2027 to better track market integrity. These efforts are intended to provide a clear framework for innovation while safeguarding investors and building market confidence. By feeding supervisory data into the European Commission’s upcoming MiCA review, ESMA is positioning itself to influence future legislative adjustments for the digital asset sector.