ESMA Eyes Stronger MiCA Oversight, Flags Shared Order Books
The European Securities and Markets Authority (ESMA) is preparing to tighten oversight under the EU’s MiCA framework less than a year after its launch. Regulators are concerned that some member states are issuing crypto licenses too quickly and inconsistently. A central measure under review would allow or require shared order books across EU trading venues—and possibly with non-EU platforms—to boost liquidity and improve price discovery. While this could benefit traders through deeper markets and better execution, ESMA warns it may blur lines of responsibility for trade matching, risk management and disclosure. In a recent communication, ESMA reiterated that MiCA currently prohibits crypto firms from merging order books with non-EU, non-regulated venues, stressing the need for a level playing field. Details on timing and implementation remain under consideration.
Neutral
ESMA’s move to strengthen MiCA oversight and consider shared order books has mixed implications. Enhanced regulation typically improves market integrity and investor confidence, which can support stable growth. At the same time, stricter rules and potential responsibility ambiguity around shared order books may create implementation challenges. Similar regulatory refinements in the U.S. and EU (for example, stablecoin rules) initially caused uncertainty but ultimately fostered clearer frameworks without drastic price swings. Traders should expect moderate short-term caution around technical details, while long-term market structure could benefit from improved liquidity and fairness, leading to a neutral overall impact.