📣 ESMA Pushes for Mandatory Cybersec Audits in Crypto Companies
posted 16 Oct 2024
ESMA, the European Securities and Markets Authority, recommends that crypto companies perform regular cybersecurity audits. The regulator is urging EU lawmakers in Brussels to modify the regulatory documents for the sector to secure consumer funds more effectively.
ESMA stresses that robust cybersecurity measures need to be a fundamental part of the EU's legal system. They specifically refer to the Markets in Crypto-Assets Regulation (MiCA), which is set to begin safeguarding investor assets in December 2024.
Let’s not forget that ESMA has been a key player in establishing the regulatory landscape for crypto assets. In October 2023, the agency pushed EU member countries to fast-track the creation and implementation of MiCA.
The regulator’s role also includes monitoring the cryptocurrency industry, a necessity highlighted by the frequent fraud involving digital assets. A notable example is the FTX collapse in December 2022, which left users with estimated losses exceeding $8 billion.
ESMA is advocating for a new mandate within MiCA, requiring crypto companies to undergo regular independent assessments of their cybersecurity measures. This proposal is part of the regulator’s efforts to strengthen digital asset regulation.
The European Commission, on the other hand, rejected the proposal, arguing that ESMA is overstepping its jurisdiction under the current legislative boundaries. While ESMA did not provide a comment, the Commission did not reply to the Financial Times’ request for feedback.
The regulator’s role also includes monitoring the cryptocurrency industry, a necessity highlighted by the frequent fraud involving digital assets. A notable example is the FTX collapse in December 2022, which left users with estimated losses exceeding $8 billion.
ESMA is advocating for a new mandate within MiCA, requiring crypto companies to undergo regular independent assessments of their cybersecurity measures. This proposal is part of the regulator’s efforts to strengthen digital asset regulation.
The European Commission, on the other hand, rejected the proposal, arguing that ESMA is overstepping its jurisdiction under the current legislative boundaries. While ESMA did not provide a comment, the Commission did not reply to the Financial Times’ request for feedback.
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