The European Securities and Markets Authority has launched a coordinated review of crypto-asset service providers operating under the Markets in Crypto-Assets regulation, putting custodians that hold customer funds under direct supervisory scrutiny for digital operational resilience.
What ESMA announced and which firms are in scope
ESMA announced a common supervisory action focused on digital operational resilience at crypto-asset service providers, or CASPs. The review is EU-wide and coordinated across national regulators, not a one-off investigation by a single authority. For related coverage, see Ripple's MiCA Status Is Not Yet a Full License.
MiCA, the Markets in Crypto-Assets regulation, is the EU’s comprehensive framework for regulating crypto firms. It sets licensing requirements, conduct rules, and safeguarding obligations for companies that offer crypto services to European customers.
Custodians, the firms that hold or safeguard customer crypto assets on their behalf, are the primary focus of this review. These include exchanges with custody services, dedicated wallet providers, and any CASP responsible for securing private keys or managing client holdings. As previously reported, ESMA’s crypto custody review targets EU CASPs specifically under these MiCA obligations.
This is a supervisory action, not a new law, ban, or enforcement outcome. ESMA is examining whether firms already operating under MiCA meet the resilience standards the regulation requires.
Why resilience checks matter for people using crypto platforms
Digital operational resilience refers to a firm’s ability to keep running during cyberattacks, system failures, and unexpected surges in demand. For custodians, a resilience failure can mean customers cannot access or withdraw their crypto assets.
Past incidents across the crypto industry have shown what happens when platforms lack adequate safeguards: prolonged outages during volatile markets, delayed withdrawals, and in extreme cases, permanent loss of customer funds. ESMA’s review targets exactly these risks by checking whether authorized crypto firms across the EEA have the systems and procedures to prevent such failures.
The focus on customer protection rather than market dynamics is deliberate. As MiCA deadlines reshape EU exchange access, regulators want assurance that licensed firms can actually deliver the security guarantees their licenses imply.
What comes next under MiCA for firms and customers
Because this is a coordinated supervisory action rather than a single comment or consultation, structured follow-through is expected. National competent authorities across EU member states will conduct the reviews simultaneously, and ESMA will likely publish aggregated findings.
Firms that fall short may face remediation requirements, enhanced reporting obligations, or restrictions on their activities. The review sits within ESMA’s broader push for expanded crypto regulatory powers across the EU.
For people who keep crypto with third-party custodians, three signals are worth watching: whether your platform issues compliance updates referencing ESMA’s review, whether repeated outages or withdrawal delays occur without explanation, and whether the platform publicly discloses its operational resilience arrangements as MiCA requires.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
