EU regulators seek to strengthen MiCA oversight, with shared order books in focus

According to CoinDesk, less than a year after the implementation of the EU's Markets in Crypto-Assets Regulation (MiCA), various issues have already begun to emerge, and regulators are working to prevent these problems from worsening. Currently, there are concerns that some member states are issuing licenses too quickly.

The European Securities and Markets Authority (ESMA) intends to adopt more centralized and stringent measures for cryptocurrency regulation within its jurisdiction, although specific details of the plans remain unclear. One potential change involves liquidity sharing outside the EU and the use of a unified order book. From a regulatory perspective, shared order books could blur the lines of responsibility for matching trades, information disclosure, risk management, and best execution; from a trader's perspective, aggregating buy and sell orders from a broader audience can create greater liquidity, facilitate easier transactions, and yield more accurate pricing.

ESMA has not provided a specific response regarding the shared order book issue, but in an email, it stated that its position earlier this year during a Q&A session—where it was mentioned that "MiCA does not allow cryptocurrency trading companies to merge their order books with any non-EU, non-MiCA regulated trading platforms"—is aimed at ensuring a fair competitive environment in the application of MiCA within the EU, and it will continue to work towards this goal.