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ESMA launches operational resilience review for EU crypto custodians
The Common Supervisory Action will test custody controls at a sample of MiCA-authorized crypto asset service providers, including key management and third party dependencies.
Cointelegraph reports that the European Securities and Markets Authority has launched a Common Supervisory Action to examine the operational resilience of crypto asset service providers, with custody services a central focus.
Under the EU’s Markets in Crypto-Assets Regulation framework, the review is aimed at gauging how mature custodians’ digital operational resilience programs are for custody activities.
ESMA said the assessment will look at areas such as key and storage management, transaction controls, incident response, and reliance on third party providers.
Cointelegraph also notes that industry executives view the move as a shift from simply obtaining a license to demonstrating that operational controls can withstand real world risks.