CySEC Launches On-Site Crypto Custodian Inspections for EU Resilience Review

CySEC initiates on-site checks of crypto custodians as part of ESMA’s 2026-2027 EU-wide resilience review, focusing on operational security and governance compliance.

Woofun AI reports that the Cyprus Securities and Exchange Commission (CySEC) will enforce stricter oversight of crypto asset custody providers via on-site inspections and off-site reviews. This action aligns with a European Securities and Markets Authority (ESMA) initiative spanning from the second half of 2026 to the first half of 2027, where EU regulators will sample licensed custodians. The assessments target digital operational resilience, covering governance, key management, transaction controls, incident response, and third-party risks. Findings will be submitted to ESMA, with the program concluding in the second half of 2027.