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The European Securities and Markets Authority (ESMA) is going to increase its scrutiny on transactions involving cryptocurrencies, according to a public tender issued by the watchdog. The authority is seeking suppliers who can provide trading data on crypto transactions, including spot trades and derivatives, according to Reuters.
ESMA will monitor companies in the crypto space that is considered the Wild West sector of the industry, according to some officials. The move follows after after EU institutions agreed on draft legislation to extensively regulate the digital asset space known as Markets in Crypto Assets (MiCA). Smaller companies will be licenced by national regulators, while ESMA will oversee larger entities in the space. A statement released by the regulator describing its role in the regulation said:
“The coverage should encompass all major exchanges and crypto assets so that it provides a fair representation of the crypto market landscape.”
The report further notes that governments all around the world use crypto transaction information to find out who is involved in each transaction, detect market abuse, and see if there are any risky positions building up, which could lead to problems in the markets.
The watchdog wants to be able to see spread and liquidity across exchanges and trading pairs, both in fiat and cryptocurrency. The data should be available daily, according to ESMA’s announcement. The contract for these services should not be more than 100,000 euros ($101,000).
The MiCA law gives the European Securities and Markets Authority the job of monitoring top cryptocurrency markets in the 27-country bloc. ESMA will also have to determine the scope of the law regarding various crypto assets, including Bitcoin.