The European Securities and Markets Authority (ESMA) is preparing to implement stricter supervision of transactions related to cryptocurrencies. The agency is now looking to hire transaction data vendors, as oversight of major market players falls under its responsibilities.
ESMA is launching a public tender for cryptocurrency trading data providers.
European Union securities watchdog ESMA is preparing to step up oversight of transactions involving cryptocurrencies, according to a public tender. On Tuesday, the authority launched a procurement procedure for providers of trading data on cryptocurrency transactions, including spot transactions and derivatives, Reuters reported.
The move comes after EU institutions agreed on a draft proposal to comprehensively regulate the digital asset space, known as Crypto Asset Markets (MiCAs). While under the legislation smaller firms will be authorized by national regulators, ESMA will be tasked with overseeing the larger players in the “far west“, as some officials described it. In a notice, the regulator detailed:
Coverage should encompass all major exchanges and crypto-assets to provide a fair representation of the crypto market landscape.
The report notes that regulators around the world use trade data to identify market abuse, learn who is on either side of a trade, and look for risky accumulations of positions that could undermine markets.
ESMA’s announcement emphasizes that data must be available on a daily basis. The watchdog also wants access to order books where it can see spreads and liquidity between exchanges and trading pairs, both in fiat and cryptocurrency. The contract for these services should not be worth more than €100,000.
The MiCA legislation designates the European Securities and Markets Authority as the main cryptocurrency watchdog in the 27-nation bloc, with certain powers above those of national regulators. ESMA will also be responsible for determining the scope of the law regarding different crypto-assets.