ESMA Pushes for Stricter Crypto Regulation, Proposing Mandatory Cyber Audits

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The European Securities and Markets Authority (ESMA) urged lawmakers in Brussels to tighten crypto regulation, pushing for external audits of cyber defenses among crypto companies.

ESMA stated that such measures were critical to safeguarding consumer interests, as cyberattacks on the crypto industry have risen dramatically in recent years.

According to an exclusive Wednesday report from the Financial Times, ESMA’s proposal seeks to amend the Markets in Crypto-Assets Regulation (MiCA), the European Union’s (EU) comprehensive crypto regulatory framework, which is set to fully take effect in December 2024.

Esma Wants to Level Up Europe's Crypto’s Cyber Armor!

The EU's regulator is pushing for mandatory audits to beef up security after $1.5B got stolen in just 6 months.

With FTX and Binance meltdowns still fresh, Esma says it’s time for exchanges to harden up before the new rules… pic.twitter.com/5D9fbl8IHm

MiCA intends to bring clarity and protection to the largely unregulated crypto sector. The sector has been plagued by several scandals, most notably the infamous collapse of the FTX exchange.

As part of its recommendations, ESMA has proposed that crypto companies be required to conduct third-party audits of their systems to identify potential vulnerabilities.

These heightened concerns arise as the proposal comes at a time when regulators are increasingly worried about the sector’s growing susceptibility to cyberattacks.

In the first half of 2024, over $1.5 billion was stolen from crypto platforms. This represents an 84% increase over