How does ESMA plan to combat market abuse in the crypto asset market?

At the turn of April and May, the European Securities and Markets Authority (ESMA) published new guidelines for the competent authorities of Member States regarding the prevention of market abuse in crypto-assets. The purpose of these guidelines is to harmonize supervisory measures and strengthen cooperation between supervisory authorities. This is the second set of ESMA guidelines addressed to supervisory authorities, but they are also relevant for market participants.

The legal basis for these guidelines is Article 92(3) of the Regulation of the European Parliament and of the Council on Markets in Crypto-Assets (MiCA), which stipulates that guidelines for supervisory authorities should be published by 30 June 2025.

What Are the Guidelines About?

The document outlines 12 guidelines concerning:

1. proportionality and flexibility in the application of guidelines by supervisory authorities,
2. the adoption of a general stance by supervisory authorities regarding measures to prevent and detect market abuse,
3. the integration of supervisory practices applied to date,
4. fostering a common supervisory culture to ensure market integrity within the MiCA framework,
5. the adequacy of the human resources and technical of supervisory authorities,
6. engaging in dialogue with market representatives on threats to market integrity,
7. initiatives to promote market integrity,
8. data-driven market monitoring and supervision and cooperation with other authorities,
9. supervision of arrangements, systems, and procedures employed by market participants,
10. responding to reports of suspicious transactions and orders submitted by market participants,
11. coordination by ESMA of national supervisory authorities’ actions during cross-border proceedings,
12. addressing obstacles to effective detection of cross-border market abuse caused by third countries and crypto-asset service providers (CASPs).

The Role of the Guidelines

Particular importance for market participants is attached to the guidelines dedicated to STOR reporting, supervision of market arrangements, and responding to obstacles in combating abuses during cross-border proceedings.

The first of these guidelines will help standardize the reporting process by market participants, thereby streamlining the fight against market abuse.

The application of ongoing supervision over arrangements, systems, and procedures employed by market participants will facilitate supervisory authorities’ understanding of the crypto-asset market, as well as enable rational and proportionate application of sanctions.

The final guideline will assist in identifying undesirable actions undertaken by CASPs operating cross-border, and help prevent such actions in the future.

When will the guidelines come into force?

Within three months, the guidelines will be translated into the official languages of the Member States and published on ESMA’s website. However, ESMA encourages supervisory authorities to implement the provisions immediately, without waiting for the translations to be published.

Therefore, we encourage you to contact our experts, who will help you prepare for the implementation of the new ESMA guidelines and effectively secure your activities on the crypto-asset market.