ESMA has finalized guidelines for EU regulatory agencies on detecting and preventing abusive behavior in the cryptocurrency market

According to Finance Magnates, the European Securities and Markets Authority (ESMA) has released the "Final Guidelines for Anti Abuse Regulation in the Cryptocurrency Market", which serves as a supporting set of MiCA regulations and will be fully implemented within three months of its publication. The guidelines require the regulatory agencies of the 27 member states of the European Union to establish a unified market monitoring system, focusing on preventing three types of violations: insider trading, illegal information disclosure, and market manipulation. It particularly emphasizes the need to strengthen supervision of the dissemination of false information on social media, blogs, and other online platforms. The document requires professional trading firms (PPAETs) to deploy automated monitoring tools and establish a tiered processing mechanism for Suspicious Transaction Reports (STORs). For cross-border regulation, ESMA explicitly requires regulatory agencies from various countries to share regulatory cases of non EU cryptocurrency companies and regularly report cross-border collaboration barriers to ESMA. It is worth noting that the development process of this guideline did not involve public solicitation of opinions. ESMA explained that due to the explicit authorization of Article 125 of the MiCA regulations and the guidelines only targeting regulatory agencies rather than market participants. Regulatory agencies in various countries are required to submit a compliance commitment letter to ESMA within two months. If partial exemption is chosen, specific details must be explained