Europe Tightens Crypto Rules as Kazakhstan Expands Sector

The global regulatory landscape for digital assets is entering a new phase as European regulators intensify oversight following the full implementation of the Markets in Crypto-Assets (MiCA) framework, while Kazakhstan moves to accelerate blockchain adoption through new legislation designed to integrate digital assets into its financial system.

Summary:

ESMA has begun post-MiCA supervision by reviewing how licensed crypto firms safeguard customer assets.
The regulator is also overseeing the orderly exit of firms that failed to secure authorization before the July 1 deadline.
Kazakhstan has unveiled a national strategy to integrate stablecoins, digital assets and mining into its financial system.
Both initiatives reflect a broader global shift from crypto adoption toward regulated market infrastructure.

Although the approaches differ, both developments point toward the same objective: bringing cryptocurrencies further into regulated financial markets while strengthening investor protection and institutional participation.

Europe Shifts From Licensing to Supervision

Following the conclusion of MiCA’s transitional period on July 1, the focus across the European Union has shifted from licensing crypto businesses to supervising how they operate.

On July 8, the European Securities and Markets Authority (ESMA) launched a Common Supervisory Action (CSA) examining the operational resilience of Crypto-Asset Service Providers (CASPs), with particular attention on how firms safeguard customer assets against cyber threats and operational failures.

Rather than assessing whether companies qualify for authorization, regulators are now evaluating whether licensed firms continue to meet MiCA’s ongoing requirements for governance, custody and risk management.

The review places particular emphasis on custody services, an area regulators consider critical following several high-profile failures in the digital asset industry over recent years.

Unauthorized Firms Face Increasing Pressure

Alongside its supervisory review, ESMA is coordinating with national regulators to oversee the orderly withdrawal of crypto firms that failed to obtain MiCA authorization before the July deadline.

Rather than allowing unlicensed providers to continue operating indefinitely, regulators are requiring firms to transfer customer assets responsibly or assist clients in moving holdings to authorized providers or self-custodied wallets.

ESMA has also clarified that licensed CASPs cannot outsource core custody services to third-party entities that are not themselves authorized under MiCA, closing a potential regulatory gap for overseas custodians.

For consumers, the regulator is encouraging users to verify whether their crypto provider appears in ESMA’s official register before continuing to use its services.

Kazakhstan Expands Its Digital Asset Strategy

While Europe is concentrating on supervision, Kazakhstan is broadening the role of digital assets within its economy.

According to the official press release, president Kassym-Jomart Tokayev has signed a decree outlining measures to accelerate the country’s digital asset industry, part of a wider strategy to position Kazakhstan as a regional hub for blockchain technology and regulated crypto services.

The initiative includes plans to integrate stablecoins into cross-border payments, strengthen licensing requirements for digital asset service providers, introduce tax incentives for investors using regulated platforms and improve energy efficiency for the country’s mining industry by utilizing associated gas from oil production.

The decree builds on legislation introduced earlier this year that formally distinguishes cryptocurrencies from tokenized financial assets and establishes reserve requirements for stablecoin issuers operating within Kazakhstan.

Two Markets, One Regulatory Direction

Although Europe and Kazakhstan are pursuing different policy priorities, both are moving toward a more structured digital asset market.

Europe is concentrating on ensuring licensed firms continue meeting operational, custody and investor protection standards now that MiCA is fully in force. Kazakhstan, meanwhile, is using regulation to encourage investment, support blockchain infrastructure and expand legitimate uses for digital assets within its domestic economy.

For businesses, both developments underscore a broader industry trend: regulatory approval is becoming only the starting point.

Firms are increasingly expected to demonstrate strong governance, resilient operational controls and transparent custody arrangements while operating within clearly defined legal frameworks.

As governments continue integrating digital assets into traditional financial systems, competition is shifting beyond attracting crypto businesses toward building regulatory environments that balance innovation with long-term market stability.

The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.

Author

Alexander Zdravkov

Reporter at CoinsPress

Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.