ESMA Targets Crypto Custody Controls Under MiCA Rules

The European Securities and Markets Authority (ESMA) has launched a coordinated supervisory action targeting the custody practices of authorized crypto-asset service providers (CASPs) across the European Union. Following the conclusion of the MiCA transition period on July 1, this initiative aims to standardize oversight of operational resilience, key management, and digital asset storage. National competent authorities will conduct risk-based reviews of firm governance, transaction controls, and incident response protocols through the first half of 2027. This regulatory push is critical for the RWA market, as robust custody standards are foundational for institutional adoption of tokenized assets. By harmonizing enforcement across member states, ESMA seeks to mitigate systemic risks associated with technology reliance and service disruptions. The move coincides with increased market activity, such as BitGo’s recent launch of a Europe-focused crypto-as-a-service platform designed to support MiCA compliance. Ultimately, this multi-year assessment will culminate in a final report in late 2027, establishing a clearer benchmark for the security of digital assets within the EU.