New ESMA Guidelines Signal Stricter Crypto Scrutiny
The European Securities and Markets Authority (ESMA) has taken a major step forward in shaping the regulatory landscape for crypto assets across the European Union (EU). Following the introduction of the Markets in Crypto-Assets Regulation (MiCA), ESMA has released detailed supervisory guidelines to help National Competent Authorities (NCAs) detect and prevent market abuse in digital asset markets, with a particular focus on insider dealing and the misuse of inside information.
These guidelines build on ESMA’s extensive experience enforcing the Market Abuse Regulation (MAR) in traditional finance, but are tailored to the unique characteristics of crypto. The guidelines are particularly significant for crypto-asset service providers (CASPs) and individuals responsible for arranging or executing transactions, both of whom fall explicitly within the scope of MiCA’s market abuse framework.
Supervisors are urged to take a proportionate, risk-based approach that adapts traditional market abuse controls to the evolving dynamics of crypto. Authorities should monitor not only regulated firms, but also individuals such as traders, miners, validators, and influencers—especially those who may access or exploit material, nonpublic information (MNPI). The guidelines explicitly highlight risks such as validators front-running transactions or insiders at CASPs leaking information about upcoming token listings. ESMA encourages NCAs to integrate crypto-specific oversight into existing surveillance frameworks and build supervisory capabilities around new threats like MEV (maximal extractable value) strategies, token supply manipulation, and social media-driven misinformation.
Beyond enforcement, the guidelines call for cross-border cooperation, public engagement, and proactive education to promote market integrity. NCAs should raise awareness among market participants about behaviors that constitute market abuse, including insider trading, and ensure surveillance tools are capable of detecting such misconduct across both centralized and decentralized ecosystems. The framework stresses the importance of analyzing suspicious transaction reports (STORs), evaluating internal controls of trading platforms (persons professionally arranging or executing transactions or “PPAETs”), and addressing challenges posed by third-country CASPs that may impede effective supervision. By emphasizing early detection, transparent coordination, and real-time monitoring, ESMA’s guidelines aim to future-proof compliance and safeguard the integrity of the EU’s digital asset markets.
Fast Moving Timeline
Recognizing that crypto markets operate around the clock and across jurisdictions, ESMA is pushing for early action. Although the guidelines will formally apply three months after being published in all EU languages, NCAs are expected to declare their level of compliance within two months—setting a fast-moving regulatory timeline.
This signals a clear message to the industry: supervisory expectations are accelerating, and compliance programs must evolve in step. The days of relying on manual processes or disconnected tools—especially when tracking employee crypto trading—are numbered.
Preparing for MiCA with StarCompliance
This is where StarCompliance (Star) can help. Our purpose-built Crypto Trading Compliance Software is designed to meet the challenges of MiCA and other emerging crypto regulations head-on. Our platform offers:
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As crypto oversight matures across the EU and beyond, firms must be ready to respond with agility and confidence. By automating and streamlining compliance processes, Star empowers firms to stay ahead of regulatory change and reduce the risk of market abuse. More importantly, it enables the creation of a forward-looking, resilient global compliance culture—one that adapts to new rules as they arise.
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Annual Crypto & Compliance Survey 2024
