The European Commission adopted a Delegated Regulation under the Regulation on Markets in Cryptoassets (MiCAR). This regulation includes technical standards designed to enhance the transparency of data presented by crypto-asset service providers (CASPs) operating trading platforms, announces by the European Commission.
Article 76 of MiCAR establishes the operational conditions for crypto-asset trading platforms. It mandates pre-trade and post-trade transparency requirements to ensure market clarity. Under these rules, platforms must publicly disclose bid and ask prices, the depth of trading interests, and the price, volume, and timing of executed transactions. The aim is to make these details available as close to real-time as possible, thereby improving transparency for market participants.
The newly adopted Delegated Regulation, based on Article 76(16)(a) of MiCAR, introduces regulatory technical standards (RTS) specifying how such data should be presented. These standards detail the format, structure, and level of detail required for both pre- and post-trade data disclosures.
ESMA’s role in drafting standards
The European Securities and Markets Authority (ESMA) was tasked with drafting the RTS. Following a mandate from the European Commission, ESMA conducted a public consultation from 5 October to 14 December 2023. Stakeholders were invited to provide input on how the transparency data should be structured and disaggregated. The draft RTS reflects feedback from this consultation, aiming to align the technical requirements with market needs while ensuring compliance with MiCAR’s overarching objectives.
Next steps
The Delegated Regulation will now be reviewed by the Council of the EU and the European Parliament. If neither body raises objections, the regulation will be published in the Official Journal of the EU and come into effect 20 days later. This marks a significant step toward implementing MiCAR’s framework, which seeks to provide greater regulatory certainty and transparency in the cryptoasset market across the European Union.
