The European Securities and Markets Authority (ESMA) has called on the European Union to strengthen crypto regulations by requiring external cybersecurity audits for crypto companies, the Financial Times reported. The recommendation comes as the crypto industry faces a significant increase in cyberattacks.
ESMA’s proposal is part of amendments to the upcoming regulatory regime, the Markets in Crypto-Assets Regulation (MiCA), set to be fully enforced in December 2024. The proposal includes a requirement for companies to undergo third-party audits to assess and address potential cybersecurity vulnerabilities.
ESMA argues for tighter safeguards as cybercriminals increasingly target the sector. However, some resistance has been met, with the EC voicing concerns that the proposal could go beyond MiCA’s intended scope.
