The European Securities and Markets Authority (ESMA) plans to introduce stringent cybersecurity regulations for crypto companies under new EU laws. This initiative aims to enhance digital asset protection and mitigate hacker risk.

ESMA's Strict Cyber Regulations

Starting December, enhanced cybersecurity measures under the Markets in Crypto-Assets Regulation (MiCA) will require crypto companies to undergo external audits of their systems. The changes respond to an increasing number of hacking attempts targeting centralized crypto exchanges. These new MiCA measures make third-party audits compulsory for all firms.

Current State of Crypto Cyberattacks

In the first half of 2024, crypto companies lost over $1.5 billion due to cyber breaches, an 84% increase compared to the same period in 2023, according to Chainalysis. Nearly 150 incidents occurred, reflecting a rising trend of hacks on exchanges. Under MiCA, high-profile hacks like those on BingX in Singapore or the $230 million heist on WazirX in India can be prevented.

Global Efforts in Cybersecurity Enhancement

The new EU crypto rules align with global initiatives to strengthen cybersecurity in the industry. The US Securities and Exchange Commission (SEC) has been actively addressing compliance with existing securities laws.

The introduction of new EU cyber rules showcases a commitment to enhancing security in the crypto sector, resonating with global efforts in this domain.