According to a public tender document, the European Union’s securities watchdog has started the preparation for increased crypto transaction scrutiny. The action came in response to groundbreaking rules for regulation dubbed a “Wild West sector.”
To the unfamiliar, the European Securities and Markets Authority (ESMA) is an independent European Union (EU) Authority that helps in maintaining the stability of the EU’s financial system. It does so by improving the investors’ protection along with the promotion of stable and orderly financial markets.
The European Securities and Markets Authority(ESMA) will supervise the key players while national regulators licensed cryptoassest companies are licensed in the 27-country bloc.
On Tuesday, ESMA in a public announcement revealed that the suppliers of trading data on crypto transactions inclusive of derivatives and spot trades. But it excludes transactions from blockchain on the distributed ledger technology that support cryptoassests such as Bitcoin.
In its notice, ESMA stated that the coverage should have all major cryptoassests and major exchanges for an honest representation of the crypto market landscape.
For finding out the abuses in markets and to know about the entities on each side of transaction regulators utilize transaction data. It also seems to be a risky build up of position which could undermine orderly markets.
Further it mentions that the data must be available for daily frequency along with the access to order books. Books where spreads and liquidity across exchange and trading pairs in crypto and fiat can be seen. The maximum value of the contract is worth 100,000 euros.
In other news, on July 29, the European Securities and Markets Authority (ESMA) published a Call for Evidence on pre-hedging. The purpose is to promote discussions among stakeholders and gain more evidence on pre-hedging. Pre-hedging will help ESMA in developing appropriate guidance.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.