European Securities and Markets Authority issues supervisory briefing to harmonise MiCA authorisation expectations for crypto-asset service providers

The European Securities and Markets Authority has published a supervisory briefing intended to align National Competent Authorities’ approaches to assessing authorisation applications from Crypto Asset Service Providers (CASPs) across EU member states. Developed with NCAs, the briefing sets out shared supervisory expectations for both applicants and authorising authorities to support supervisory convergence and reduce the scope for regulatory arbitrage. The briefing covers expectations on substance and governance, including the ability of CASPs serving the EU to operate autonomously with sufficient in-country personnel. It also addresses outsourcing by clarifying effective limits on the externalisation of functions and services, and sets expectations on staff suitability, particularly that executive management should demonstrate effective technical knowledge of the crypto ecosystem. ESMA positions the guidance as a tool to translate MiCA and related regulatory technical standards (RTS) obligations into concrete controls and checks for NCAs, applicants and the public. NCAs are expected to apply the briefing’s principles during authorisation procedures and to ensure CASPs’ continued adherence once authorised.