The venture capitalist firm said ESMA’s approach to crypto market abuse could be a disaster for the industry without suggesting any better ideas.
Venture capital firm Paradigm has filed a comment letter in response to the European Securities and Markets Authority (ESMA) consultation paper on enforcing abuse prevention in the crypto assets market.
ESMA’s paper concerns the implementation of measures introduced in the Markets in Crypto-Assets (MiCA) Act, the first of which comes into force on June 30. Paradigm’s main point of contention, as with earlier commenters, was ESMA’s stance on “market abuse, e.g., the well-known Maximum Extractable Value (MEV).”
ESMA is incorrectly “drawing a parallel between market abuse of the kind seen in traditional, centralized financial markets and activities of base layer actors,” Paradigm said, adding:
