Under the new MICA regulatory framework, the EU regulator is looking for a provider of transaction data in crypto assets, excluding those that pass on the blockchain. Objective: to protect against abuse and destabilisation of markets 03 Aug 2022 Patrizia Licata journalist
Europe begins to put order in the Far West of crypto-finance: after the approval of the rules for the sector (Mica), the supervisory body of the European markets ESMA (European Securities and markets authority) is gearing up to raise the level of control over transactions in cryptocurrencies and other innovative finance assets. It will do so first of all by collecting Big Data on exchanges, as can be seen from the "Crypto data" call published by ESMA with which the regulator's procurement office seeks a provider of trading data on transactions in cryptoassets, including spot trades and derivatives. Transactions carried out on the blockchain, i.e. those that take place in cryptocurrencies such as bitcoin, are excluded. The contract has a maximum value of 100,000 euros, corresponding to a four-year contract. Index of topics • ESMA is looking for a crypto-trading data provider • Mica standards for cryptocurrency markets ESMA seeks a crypto-trading data provider Last month the European Union approved its rules for the industry, placing cryptocurrencies, cryptocurrency issuers and cryptocurrency service providers in the MICA regulatory framework for the first time.
Although crypto-asset companies will have to obtain licenses to operate from the national regulators of the 27 member countries, ESMA will supervise the major players. Trading data coverage "should include all major exchange platforms and major crypto-assets so as to provide a reliable representation of the crypto market landscape," the ESMA notice reads. The object of the contract is the "Crypto off-chain data, i.e. data that does not originate from a blockchain or distributed ledger technology, including spot markets and derivatives trading on centralized exchanges or OTCs", or over the counter. "The data should be available on a daily basis and include access to order books where you can see spreads and liquidity on exchange platforms and currency pairs (in fiat and crypto)." Regulators use transaction data to detect market abuse, understand who is on each side of the transaction, and hunt for risky buildups of positions that could threaten the orderly functioning of markets. Mica rules for cryptocurrency markets Last July, the European Union introduced decentralised finance operators and instruments into a regulatory framework. The PRESIDENCY of the EU Council and the European Parliament have in fact reached a provisional agreement on the proposal relating to cryptocurrency markets (Mica), which covers issuers of unsecured cryptocurrencies and so-called stablecoins, as well as trading venues and wallets in which cryptocurrencies are held. The Commission adopted its proposal in September 2020. This regulatory framework aims to protect investors and preserve financial stability, while enabling innovation and promoting the attractiveness of the cryptocurrency industry. "This will bring more clarity to the European Union, as some member states already have national legislation for cryptocurrencies, but so far there was no specific regulatory framework at EU level." The agreement will now have to be confirmed by member states' ambassadors to the EU and the relevant parliamentary committee, before it can be definitively approved by the two EU co-legislators.