ChainCatcher reported that the European Securities and Markets Authority (ESMA) said on Wednesday that crypto companies should be required to undergo 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's Markets in Crypto-Assets (MiCA) bill, which will come into full effect in December.
ESMA, which has been pushing for the inclusion of a requirement for cryptocurrency firms 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 had overstepped its authority and exceeded its legislative remit. Both parties declined to comment.