Tags in this story
Crypto, cryptoassets, cryptotransactions, cryptocurrencies, cryptocurrency, EU, Europe, European, European Union, oversight, regulator, scrutiny, securities, transaction data, watchdog
Europe’s securities regulator ESMA seeks to obtain crypto transaction data – Regulation Bitcoin News
The European Securities and Markets Authority (ESMA) is preparing to implement stricter oversight of crypto-related transactions. The agency is now looking to hire trade data providers, as monitoring major players in the market falls under its responsibility.
ESMA launches public procurement for crypto trading data providers
The European Union’s securities watchdog, ESMA, is preparing to increase scrutiny of transactions involving cryptocurrencies, a public tender has indicated. On Tuesday, the authority launched a procurement procedure for providers of trade data on crypto transactions including spot trades and derivatives, Reuters reported.
The move comes after EU institutions agreed on a draft proposal to regulate the digital asset space known as the Markets in Crypto Assets (MiCA) package. While smaller companies under the legislation will be licensed by national regulators, ESMA will be responsible for overseeing larger players in the “Wild West” sector, as some officials have described it. In a notice, the regulator described:
Coverage should include all major exchanges and crypto assets so that it provides a fair representation of the crypto market landscape.
The report further notes that regulators around the world use transaction data to identify market abuse, determine who is on each side of a transaction, and look for risky build-ups of positions that could undermine markets.
ESMA’s announcement emphasized that the data should be available daily. The watchdog also wants to have access to order books where it will be able to see spreads and liquidity across exchanges and trading pairs, both in fiat and cryptocurrency. The contract for these services should not be worth more than €100,000 ($101,000).
The MiCA legislation designates the European Securities and Markets Authority as a lead cryptocurrency watchdog in the 27-strong bloc of nations with certain powers that go beyond national regulators. ESMA will also be responsible for determining the scope of the law regarding various crypto assets.
Do you think ESMA will be able to thoroughly monitor crypto-related transactions in the EU? Tell us in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
