ESMA initiates crypto custody supervisory review and releases EU market capitalisation data

The European Securities and Markets Authority (ESMA) launched a Common Supervisory Action to examine the digital operational resilience of crypto‑asset service providers, with a particular focus on custody services. The assessment will cover governance, key and storage management, transaction controls, incident response, smart‑contract risks and third‑party dependencies. National competent authorities will audit a risk‑based sample of authorised providers from the second half of 2026 to the first half of 2027, with a consolidated report to ESMA’s Board of Supervisors expected in late 2027.

In a separate release, ESMA published its inaugural annual market‑capitalisation figures and ratios for all EU member states covering the 2024 and 2025 reference years. The data, produced under the Faster Directive, help identify countries whose market size exceeds 1.5 % of the EU total for four consecutive years, triggering stricter withholding‑tax‑relief requirements. The regulator says the figures will be updated each year to aid investors and national authorities in complying with cross‑border tax rules.