Daily · Crypto Resilience & Market Access · July 8, 2026

Crypto custody under the microscope

The European Securities and Markets Authority (ESMA) is launching a Common Supervisory Action to test the "digital operational resilience" of Crypto-Asset Service Providers (CASPs). Specifically, the regulator will examine how these firms handle custody services, focusing on the technical security of keys, storage management, and the risks associated with smart contracts and third-party providers. For business leaders in the digital asset space, this means a wave of risk-based audits from national authorities between late 2026 and early 2027. Firms must ensure their governance and incident response frameworks are robust now to avoid regulatory hurdles during these inspections.

Modernizing market access and enforcement

In the US, the SEC is moving to lower the barriers for smaller companies to go public. Through upcoming roundtables and advisory committee meetings in July, the regulator is exploring ways to modernize the IPO process and expand public market access. This is a critical signal for founders and venture-backed startups that the path to a public listing may soon become more streamlined.

Conversely, the UK's Financial Conduct Authority (FCA) continues to signal a zero-tolerance approach to market abuse. The recent criminal charges against a solicitor for insider dealing during an acquisition serve as a stark reminder that the use of non-public information during M&A deals carries severe personal and professional risks.

Banking supervision and reporting shifts

Financial institutions face new technical requirements in the EU. ESMA has released technical standards under EMIR 3 regarding admission criteria for central counterparties (CCPs). This defines the elements CCPs must consider when admitting clearing members, including non-financial counterparties, which impacts how firms manage their clearing and liquidity operations. Additionally, the EBA has issued an opinion on IFRS 18, the new global accounting standard, to ensure that supervisory financial reporting remains consistent. Compliance teams should update their reporting workflows to align with these standards to avoid discrepancies in regulatory filings.

Sanctions updates and operational changes

The EU has issued several corrections to its restrictive measures regarding Russia. While these are corrigenda (corrections to previous texts), compliance officers must update their screening lists immediately to ensure operations remain legal. In the UK, new VAT regulations have shifted the minimum value for capital expenditure on buildings and civil engineering works to £600,000 and removed computer equipment from certain capital item lists. This change directly affects how businesses account for and reclaim VAT on major infrastructure and tech investments.

This overview is informational, not legal or compliance advice. Consult your lawyer or compliance specialist on specific decisions.

Sources

This overview is based on official regulator publications for the period: