ESMA Identifies MEV as Potential Market Abuse

The European Securities and Markets Authority (ESMA) in its latest regulatory proposals under MiCA has signaled that a technique used by some cryptocurrency miners, known as Maximum Extractable Value (MEV), may be a potential form of market abuse.

MEV involves reordering transactions to maximize profits, which can lead to allegations of market manipulation. In ESMA's regulatory proposals, it is emphasized that such actions may raise suspicions and should be closely monitored.

Despite the controversy surrounding MEV, some experts stress that it is not always a negative phenomenon. MEV can contribute to improving the efficiency of blockchain networks by compensating participants for their validation work.

However, some observers of cryptocurrency policy believe that MEV should not be subject to MiCA regulations, fearing excessive oversight. EUCI warns that applying MiCA to MEV could lead to overregulation of this area.

ESMA continues consultations on this matter, collecting opinions until June 25. The final regulatory position on this issue remains unclear, but according to experts, the responsibility for understanding and enforcing MEV regulations will be crucial to ensuring the integrity of the cryptocurrency market.