ESMA Shifts MiCA Focus from Rulewriting to Crypto Supervision in 2027
Regulator pivots to enforcement phase
The European Securities and Markets Authority (ESMA) is changing its approach to the Markets in Crypto-Assets Regulation (MiCA). Instead of writing new rules, the agency will now focus on supervising crypto businesses across the European Union. This shift was announced by ESMA Chair Verena Ross on Monday during a meeting with the European Parliament.
The new strategy aims to ensure that crypto asset service providers (CASPs) operate safely and consistently. CASPs are companies that offer services like trading, custody, or issuance of digital assets. The goal is to create a clear framework that protects investors while allowing innovation to continue.
2027 supervision priorities
- Strengthening coordination between national regulators who oversee crypto firms.
- Focusing on operational resilience and how firms handle outsourcing risks.
- Ensuring companies maintain sufficient physical operations inside the EU.
- Harmonizing periodic reporting requirements for all crypto service providers.
- Promoting common risk indicators and supervisory dashboards.
Details from the ESMA work program
These priorities were outlined in ESMA's 2027 work program, published on September 28, 2026. The document highlights specific areas such as liquidity management, reverse solicitation (where customers bypass local rules to access services from abroad), and proper asset classification.
ESMA also plans to advance MIDAS, its centralized system for monitoring crypto markets. This tool helps detect potential market abuse. The first phase of MIDAS is expected to be fully operational in 2027. A second phase, which adds more data and analytical features, is scheduled for the fourth quarter of 2027, pending approval.
Feeding insights into future reviews
The regulator intends to use its supervisory experience to inform the European Commission's upcoming review of MiCA. This review is expected by June 2027. Any findings may lead to new legislative proposals to update the regulations further.
Confirmed regulatory steps
It is confirmed that ESMA has officially moved from a rulemaking phase to a supervision phase. The 2027 work program explicitly lists operational resilience, outsourcing, and reverse solicitation as key focus areas. The timeline for the MIDAS surveillance system phases is also set, with the first phase launching in 2027.
Upcoming timelines
The European Commission is scheduled to complete its MiCA review by June 2027. The second phase of the MIDAS surveillance system is targeted for release in the fourth quarter of 2027, subject to board approval.
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