EU draft considers MEV as market abuse and proposes strict regulatory standards

The European Securities and Markets Authority (ESMA) has defined Maximum Extractable Value (MEV) as a clear example of illegal market abuse in the technical standard draft under its proposed regulation on the cryptocurrency market (MiCA). Patrick Hansen pointed out that almost all EU-regulated cryptocurrency businesses, including exchanges and brokers, need to detect and report instances of MEV through comprehensive Suspicious Transaction or Order Reports (STORs). The new standard has raised concerns about the feasibility of reporting every instance. ESMA also suggests that authorities inside and outside the EU cooperate to sanction market abuse, and actors involved in MEV may face investigations and enforcement by international regulatory bodies. The consultation feedback deadline set by ESMA is June 25th, and the final standard is expected to have a significant impact on the EU's cryptocurrency regulatory environment.