ESMA Issues New MiCA Guidelines to Combat Crypto Market Abuse
On April 29, 2025, the European Securities and Markets Authority (ESMA) released its final guidelines under the Markets in Crypto-Assets Regulation (MiCA) to assist national regulators in preventing and detecting market abuse in the crypto sector. These guidelines aim to harmonize supervisory practices across EU Member States, ensuring a consistent approach to monitoring and addressing market abuse in the rapidly evolving crypto-asset landscape. Drawing from experiences under the Market Abuse Regulation (MAR), the guidelines are tailored to address the unique challenges posed by crypto markets, such as their cross-border nature and the influence of social media on trading behaviors.
The guidelines emphasize a risk-based and proportionate approach to supervision, encouraging National Competent Authorities (NCAs) to prioritize resources based on the level of risk identified. They advocate for the integration of existing supervisory practices with new measures specific to crypto-assets, promoting a common supervisory culture through open dialogue with industry stakeholders and collaboration among NCAs. Key areas of focus include the monitoring of Persons Professionally Arranging or Executing Transactions (PPAETs), the use of data-driven surveillance tools, and initiatives to promote market integrity among participants.
To ensure effective implementation, the guidelines will be translated into all EU official languages and published on ESMA's website. Following publication, each NCA is required to confirm within two months whether it complies or intends to comply with the guidelines. Non-compliance must be reported to ESMA, along with the reasons, and will be publicly disclosed. This structured approach aims to foster transparency and accountability, reinforcing the EU's commitment to safeguarding the integrity of its crypto markets.
