EU draft treats MEVs as market abuse, draws up strict regulatory standards

The European Union's Securities and Markets Authority (ESMA) has defined Maximum Extractable Value (MEV) as a clear example of an illicit market evading regulation in its technical standards under its Markets in Crypto Assets (MiCA) regulation, Patrick Hansen noted, noting that virtually all EU regulated businesses, including exchanges and financial institutions, participate in detecting and reporting instances of MEV through comprehensive "suspicious transaction reports" or "order reports. "Suspicious Transaction Reports" or "Order Reports" to detect and report instances of MEV. The new standard raises questions about the feasibility of managing the reporting of each instance. esma also proposes that authorities inside and outside the eu cooperate to sanction market evasion, and that those involved in MEV conduct may face investigation and enforcement by international regulators. esma has set a deadline for feedback on the consultation of June 25th, and the final standard is expected to have a significant impact on the eu regulatory environment.