Fintech Insights #12 – MiCA & Prevention Of Market Abuse

One of the aims of Regulation (EU) 2023/1114 (“MiCA”) is to bring stability to digital asset markets by ensuring that market abuse is prevented before it can even occur. In Malta, the MFSA enforces these standards through the powers given to it under Chapter 647 together with second-level measures, including European Commission Delegated Regulations and ESMA Regulatory Technical Standards. The rules on market abuse in MiCA closely correspond to those of the EU’s Market Abuse Regulation (“MAR”).

For crypto-asset service providers (“CASPs”) the task is clear: prevent abuse and protect market stability with firm governance, disciplined disclosure, and surveillance that reads on-chain signals as closely as order-book data. Enforcement of the market abuse regime is a further illustration explored in this FinTech Insights series which highlights the MFSA’s commitment to high supervisory standards whilst preserving its business-friendly approach in other areas.