ESMA finalizes guidance for EU regulators on detecting and preventing crypto market abuse

according to Finance Magnates, the European Securities and Markets Authority (ESMA) has issued the "Final Guidelines on Market Abuse Regulation in the Cryptocurrency Market," which will be fully implemented within three months of publication as a complementary regulation to MiCA. The guidelines require the regulatory authorities of the 27 EU member states to establish a unified market monitoring system, focusing on preventing three types of violations: insider trading, illegal disclosure of information, and market manipulation, with a particular emphasis on strengthening the regulation of false information spread on social media, blogs, and other online platforms. The document requires Professional Trading Firms (PPAETs) to deploy automated monitoring tools and establish a mechanism for the graded handling of Suspicious Transaction Reports (STORs). Regarding cross-border regulation, ESMA explicitly requires national regulatory authorities to share regulatory cases of non-EU cryptocurrency companies and regularly report cross-border cooperation obstacles to ESMA.

It is worth noting that the development of these guidelines did not involve a public consultation process. ESMA explained that, as Article 125 of the MiCA regulation explicitly authorizes, and the guidelines are only addressed to regulatory authorities and not market participants. National regulatory authorities must submit compliance commitments to ESMA within two months, and if they choose partial exemptions, they must provide specific explanations.