GDF Responds to ESMA Consultation on MiCA Market Abuse Guidelines
GDF has worked with its members in the MiCA Working Group to respond to the ESMA Consultation on technical standards and guidelines specifying certain requirements of the MiCA Regulation on detection and prevention of market abuse, investor protection and operational resilience.
Key takeaways from GDF’s response include:
1. Proportionality for Reasonable Reporting Encouraged – To prevent market abuse effectively, appropriate systems and controls should be in place to monitor orders, transactions, and other activities, tailored to the nature and scale of the business.
2. Further Consideration of Firm Size and Cost of Implementation – The requirements should be proportionate to both firm size, as well as the scope of their activities.
3. Guidance Encouraged for Aspects where Additional Monitoring and Reporting Factors may Diverge from TradFi Requirements: GDF would not advocate for a one for one transfer of Market abuse typologies from MIFID II/MAR. To effectively monitor and report suspicious activities involving crypto-assets, establishing clear and standardized parameters and naming conventions is essential and regulatory bodies and industry stakeholders should work together to define and implement these standards moving forward.
