The European Securities and Markets Authority will be implementing stricter supervision of cryptocurrency-related transactions. It is currently looking for suppliers to trade data. This agency has the responsibility of monitoring large market players.
ESMA Announces Public Procurement to Provide Crypto Trading Data
The European Union’s securities regulator, ESMA has announced that it is stepping up its oversight of cryptocurrency transactions. Reuters reports that the authority opened a tender process for trading data suppliers on cryptocurrency transactions, including spot trades as well as derivatives.
This move follows an EU institution’s agreement on a draft proposal for comprehensive regulation of the digital asset sector known as the Markets in Crypto Assets package (MiCA). While under the legislation smaller companies will be licensed by national regulators, ESMA will be in charge of monitoring larger players in the “Wild West” sector, as some officials have described it. The regulator provided details in a notice.
It should include crypto assets and all the major crypto exchanges in order to provide an accurate representation of the cryptocurrency market landscape.
Further, the report notes that regulators around the globe use transaction data in order to spot market abuses and find out who’s on the other side of any transaction. They also look for potential risky builds-ups or positions that could threaten the markets.
ESMA’s announcement emphasized the data should be available daily. The watchdog would also like to be able access order books, which will allow it to view spreads and liquidity between trading pairs in both fiat currency and crypto currencies. The contract for these services should not be worth more than €100,000 ($101,000).
MiCA legislation designates European Securities and Markets Authority to be the foremost cryptocurrency watchdog of the 27-strong bloc. This authority has some powers beyond those held by national regulators. ESMA is also responsible for determining the legal scope regarding different crypto assets.
Are you positive that ESMA can effectively monitor all crypto-related transactions within the European Union? Leave a comment below.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This is not an invitation to purchase or sell directly, nor a suggestion or endorsement of products, services or companies. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.