Strengthening Crypto Market Oversight: ESMA’s New Guidelines for Supervisory Authorities
- Antonis Hadjicostas
- May 3
- 2 min read

On 29 April 2025, the European Securities and Markets Authority (ESMA) has introduced a set of detailed guidelines aimed at helping national regulators effectively prevent and detect market abuse within the EU’s crypto-assets markets. These guidelines are a crucial component of the implementation of the Markets in Crypto-Assets Regulation (MiCA), which came into force to establish a robust regulatory framework for digital assets.
Why These Guidelines Are Critical
Enhance Market Confidence: Promote transparency and integrity in crypto trading.
Prevent Market Abuse: Detect and mitigate manipulation, insider trading, and other abusive practices.
Harmonize Supervision: Ensure consistent enforcement across all EU Member States, reducing regulatory gaps.
Core Principles of the Guidelines
ESMA emphasizes risk-based, proportionate supervisory approaches tailored specifically for the unique environment of crypto markets.
Proportionality: Supervisory measures should align with the size, complexity, and risk profile of the market participants.
Shared Supervisory Culture: Foster collaboration and information sharing among NCAs through an open dialogue and mutual learning.
Technology and Cross-Border Focus: Address the specific challenges posed by social media, innovative technologies, and the inherently cross-border nature of crypto trading.
Practical Supervisory Practices for NCAs
The guidelines outline specific actions and frameworks for regulators to implement:
Monitoring & Surveillance
Establish ongoing, real-time monitoring systems tailored for crypto assets.
Use advanced analytics and technology to identify suspicious activities.
Engagement with Stakeholders
Maintain open channels of communication with industry players, market participants, and other authorities.
Conduct regular dialogues to understand emerging risks and best practices.
Detection & Prevention
Implement systems to identify suspicious transactions or activities promptly.
Require entities to submit Suspicious Transaction or Order Reports (STORs) when anomalies are detected.
Develop and refine internal procedures to prevent market abuse.
Cross-Border Coordination
Collaborate effectively with other NCAs for cross-jurisdictional cases of market abuse.
Share intelligence, coordinate investigations, and enforce regulations uniformly across borders.
Integration of Existing Practices
Adapt current supervisory tools and processes to suit the crypto environment.
Ensure that new surveillance and detection methods are compatible with existing legal and regulatory frameworks.
Promoting Market Integrity
Encourage industry initiatives aimed at self-regulation and ethical conduct.
Organize awareness programs to educate market participants on market abuse risks.
Reaction to Suspicious Activity
Establish clear procedures for responding to suspicious transaction reports.
Ensure swift, coordinated enforcement actions to address violations.
ESMA and NCA Coordination
Coordinate with ESMA and other national authorities to ensure a unified approach.
Participate in cross-border enforcement actions and share best practices.
Addressing Third-Country Obstacles
Identify and mitigate barriers to effective supervision in cross-border crypto markets.
Engage with non-EU regulators to facilitate cooperation and enforcement.
Implementation Timeline
Guidelines are to be finalized and communicated by June 30, 2025.
Conclusion
These comprehensive guidelines serve as a blueprint for EU regulators to strengthen oversight of crypto markets. By emphasizing risk-based, technology-driven, and collaborative supervision, ESMA aims to create a safer, more transparent environment that protects investors and enhances market integrity across Europe.