Woofun AI reports that the European Securities and Markets Authority has initiated a joint oversight program to evaluate the digital operational resilience of Cryptocurrency Asset Service Providers. The initiative prioritizes custody services and examines risks linked to distributed ledger technology, including governance, key management, transaction controls, incident response, smart contract vulnerabilities, and third-party dependencies.

National Competent Authorities will perform risk-based random inspections of authorized CASPs between the second half of 2026 and the first half of 2027. Results will be compiled into a final report for ESMA’s Supervisory Committee, with submission anticipated in the second half of 2027 following the initiative's conclusion.