The European framework for cryptocurrencies is entering a new phase. After the work devoted to the rules, the authorities are now focusing on their application and monitoring. ESMA wants to strengthen coordination between national supervisors, while the obligations of actors become more structured. In this context, MiCA occupies a central place in the 2027 work program of the European regulator. Verena Ross confirms this change in approach, oriented towards supervision, convergence and monitoring of European risks.
In brief
- ESMA is shifting its priorities from creating rules to supervising crypto markets.
- The regulator will strengthen coordination between national authorities in 2027.
- MIDAS must improve monitoring of market abuse and integrate more data.
- ESMA will also participate in the review of MiCA planned by the European Commission in June 2027.
MiCA: ESMA refocuses its priorities on supervision
ESMA President Verena Ross explained that the regulator’s focus was shifting towards supervision and convergence. According to her, the objective is to allow innovation to develop within a clear framework. This approach should provide guarantees to crypto investors and strengthen confidence. With MiCA, ESMA wishes to support national authorities.
The 2027 work program, published Monday, provides for coordination between authorities that oversee crypto asset service providers, or CASPs. ESMA will pay particular attention to resilience and outsourcing risks. It will also track liquidity, reverse solicitation and asset classification. These axes must support coherent supervision between Member States in the application of MiCA.
The authority wants to harmonize the periodic reports transmitted by the CASPs to national regulators. It also provides, according to the statements from its presidentcommon risk indicators and dashboards. This approach should facilitate the comparison of the information collected. It thus places MiCA in a consistent monitoring logic on a European scale.
A reinforced monitoring system for crypto-assets
ESMA plans to develop MIDAS, its centralized cryptocurrency market monitoring system. The tool must monitor potential market abuses under MiCA. The first phase is expected to become operational in 2027. A second phase will add analytical functions and expand data.
The program plans to roll out this step in the fourth quarter, subject to approval by the board of directors. ESMA announced in February its intention to continue the development of MIDAS. The system must strengthen analysis and monitoring capabilities. This development accompanies European implementation.
Finally, ESMA intends to use its supervisory experience to contribute to the next revision of the regulation. The European Commission plans this review for June 2027. The authority is preparing for legislative proposals that may follow. Thus, MiCA is entering a phase where supervision takes on increasing importance.
As authorities strengthen their coordination, the application of the European crypto regulatory framework is expected to become more structured. The priorities announced for 2027 show attention to operational risks, data and market surveillance. The development of MIDAS must provide new means of analysis to supervisors. The next revision could clarify the developments of MiCA, depending on the experience gained.
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