ESMA Seeks To Acquire Trading Data To Monitor Crypto Market

The European regulator, ESMA (The European Securities and Markets Authority), is getting set to enforce strict monitoring of crypto-related transactions. The agency is tasked with the responsibility of monitoring participants in the crypto market. 

As a result, ESMA wants to hire providers of cryptocurrency trading data. This includes both spot trading and derivatives.

European Regulator To Hire Providers Of Trading Data For Cryptocurrency 

The EU’s securities regulator, ESMA, is preparing to increase its scrutiny on cryptocurrency-related transactions. According to Reuters, the agency opened a procurement process for providers of trading information on cryptocurrency transactions, including derivatives and spot trades.

The agency’s move is coming after institutions in the EU agree on a proposal. The proposal known as MiCA (Markets in Crypto Assets) Bill seeks to regulate the crypto asset space.

Meanwhile, as part of the legislation, national regulators will be the ones to issue licenses. However, ESMA will handle the monitoring of crypto players in the industry.

“For a true depiction of the cryptocurrency market environment, the scope should include all significant digital assets and exchanges,” the report added.

Furthermore, the report reveals that transaction data benefits regulatory agencies globally. They can use the transaction data to recognize market abuses.

Also, they can know those involved in a crypto transaction and identify risky build-ups that can affect the market.

ESMA To Monitor Spread Across Various Trading Pairs And Exchanges

According to ESMA, the trading data must be available on a daily basis. Also, the regulator wants to access the order books for crypto transactions. 

This would provide the regulator with an insight into the various liquidity and spreads across trading pairs and exchange firms. The data would be available both in crypto and fiat currency. However, the contract to obtain these services must not exceed €100,000 (approximately $101,000).

Meanwhile, the upcoming MiCA bill makes ESMA a leading watchdog over the crypto industry in the 27 European nations. Besides, the agency has more power over the crypto industry compared to national regulators.

Additionally, the agency has the power to ascertain the extent of regulations concerning different crypto assets. However, the EU hopes to pass the MiCA bill into law before the end of the year.

Globally, other countries are gearing up with guidelines for the crypto sector. US Senators have proposed various crypto bills in the past months. The bills encompass the regulation of crypto exchanges and the classification of digital assets.