ESMA Launches Supervisory Action on Crypto-Asset Custody Risks

The European Securities and Markets Authority (ESMA) has launched a supervisory action targeting how authorized crypto-asset service providers manage digital operational resilience risks related to custody activities. This initiative is particularly significant as it addresses the regulatory landscape for digital assets, which has been evolving rapidly. The announcement was made via a tweet by ESMA, highlighting the need for enhanced operational resilience in the crypto sector. You can read more about the action here.

The Latest

The broader crypto market currently exhibits mixed signals, reflecting varying momentum across major assets. Amid this backdrop, ESMA’s latest initiative underscores the increasing scrutiny that crypto service providers are facing regarding their operational practices, particularly in custody management. This action comes in the wake of heightened regulatory focus on ensuring that these providers can withstand operational disruptions, which could adversely affect user assets. By addressing these issues, ESMA aims to bolster investor confidence in the crypto ecosystem, which has been marred by security concerns in the past.

… Continue reading the full article at the original source below.