According to TechFlow, on October 16, the European Securities and Markets Authority (ESMA) said on Wednesday that crypto companies should be required to conduct external audits of their cyber defenses and urged lawmakers in Brussels to amend the region's flagship regulatory provisions for the crypto industry to better protect consumers. The agency believes that stricter cyber protection rules are an important part of the EU Crypto Asset Market Regulation (MiCA) Act, which will take full effect in December.
ESMA, which has been pushing for the inclusion of a requirement for cryptocurrency companies to undergo third-party audits of their resilience to cyberattacks, is working to finalize the implementation of the rules, which were adopted by EU lawmakers last year. However, the European Commission opposed the move, saying ESMA overstepped its authority and went beyond the remit of the legislation. Both parties declined to comment.