The EU draft defines MEV as market abuse and proposes strict regulatory standards

ChainCatcher news, according to CryptoSlate, the European Securities and Markets Authority (ESMA) has defined Maximum Extractable Value (MEV) as a clear example of illegal market abuse in its draft technical standards under the proposed Markets in Crypto-Assets (MiCA) regulation.

Patrick Hansen pointed out that nearly all EU-regulated crypto businesses, including exchanges and brokers, will need to detect and report instances of MEV through comprehensive "Suspicious Transaction or Order Reports" (STORs). The new standards have raised concerns about the feasibility of managing the reporting of every instance.

ESMA also suggested that authorities inside and outside the EU cooperate to sanction market abuse, and actors involved in MEV may face investigations and enforcement from international regulatory bodies. The consultation feedback deadline set by ESMA is June 25, and the final standards are expected to have a significant impact on the EU's crypto regulatory environment.