ESMA labels MEV as 'market abuse' in latest regulatory consultation paper

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ESMA suggests treating MEV as a form of market abuse under the EU's Markets in Crypto Assets framework.

The European Union's Securities and Markets Authority has recommended treating miner-extracted value as a form of market abuse under the MiCA regulatory framework.

As part of its proposed guidelines, the ESMA suggested that miner-extractable value , an arbitrage strategy that relies on re-ordering transactions within a block to create the maximum profit margin for validators and third-party builders, should be treated as a form of market abuse under existing MiCA rules.says,"MiCA is clear when indicating that orders, transactions, and other aspects of the distributed ledger technology may suggest the existence of market abuse e.g.

The policy expert explained:"Almost all regulated crypto businesses in the EU would need to detect and report instances of MEV through complex"suspicious transaction or order reports" . The ESMA STOR template alone is 6 pages long)."

 

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