How ESMA’s Guidelines Under MiCA Reshape Crypto Regulation

The European Securities and Markets Authority (ESMA) recently released supervisory guidelines under the EU’s Markets in Crypto-Assets Regulation (MiCA) to help national regulators detect and prevent crypto market abuse. Though aimed at regulators, these will impact the crypto industry more broadly, influencing how entities are monitored and how data is collected. 

From closer scrutiny of exchanges and influencers to a strengthened surveillance of blockchain-based manipulation, organizations should expect more structured oversight and a stronger push for accountability. If your company is active in crypto, these changes may affect how you operate, communicate, and comply.  

Policy Context and Regulatory Framework 

On April 29, 2025, the European Securities and Markets Authority (ESMA) published its final report with guidelines on how to prevent and detect market abuse under the Markets in Crypto-Assets Regulation. These guidelines, intended for national competent authorities (NCAs), are a major step toward aligning regulatory supervision of the crypto-asset landscape across the EU while addressing the evolving associated risks.

MiCA establishes uniform rules for the crypto-assets market in the EU. This regulation applies to crypto-assets not previously covered under existing financial services legislation, specifically focusing on transparency, disclosure, authorisation, and supervision of transactions for the issuing and trading of crypto-assets. By regulating public offers of crypto-assets and ensuring consumer information about associated risks, MiCA aims to support market integrity and financial stability across the EU sector. 

The regulation entered into force on June 29, 2023, and started applying from December 30 2024. Article 92(3) of the regulation mandates that ESMA issue guidelines on supervisory practices among NCAs to prevent and detect market abuse by June 30, 2025, 24 months after the regulation entered into force.

Guidelines: Objectives and Core Principles

The primary objective of the guidelines is to establish uniform, effective, and risk-based supervisory practices among NCAs to combat insider trading, market manipulation, and the unlawful disclosure of inside information. They also address features specific to crypto markets, such as the more intensive use of social media, the specific technologies used, and the cross-border nature of crypto trading, that challenge traditional market abuse frameworks. 

For these goals, ESMA adopts a two-level approach based on general principles. It emphasizes proportionality, risk assessment, and the development of a shared EU supervisory culture, as well as specific supervisory practices that provide practical tools for NCAs. These include data-driven surveillance, integration of legacy practices from the Market Abuse Regulation (MAR), and active stakeholder engagement.

From Principle to Practice: Inside the Guidelines

A key element of the guidelines is adopting a risk-based and proportionate supervisory approach. This means that entities posing greater risks to market integrity, such as large trading platforms, brokers, validators, and influential individuals, can expect higher oversight (Guideline 1). 

NCAs are also encouraged to proactively identify and address potential and emerging risks, including behaviours unique to crypto markets like maximal extractable value (MEV) strategies and misinformation spread through social media (Guidelines 2 & 3). To support this, the guidelines advise NCAs to adapt MAR-derived practices to decentralised market structures. This includes monitoring social media communications and considering how certain roles, such as validators or miners, may have access to or misuse inside information. 

The guidelines further promote EU-wide consistency by pushing for the development of a common supervisory culture (Guideline 4). ESMA recommends a regular exchange of information among NCAs, discussion of best practices and challenges, and voluntary cooperation with authorities in related areas, such as anti-money laundering or consumer protection.

For CASPs facilitating transactions, classified as persons professionally arranging or executing transactions (PPAETs), the implications of the guidelines are more direct. Regulators are expected to assess whether these entities have adequate systems to prevent and detect market abuse, according to the size and nature of their operations (Guideline 9).

Other guidelines focus on equipping NCAs with the capacity and infrastructure to carry out these procedures. These cover topics such as ensuring adequate resources and training (Guideline 5), maintaining open dialogue with industry stakeholders (Guideline 6), promoting market integrity through education (Guideline 7), and developing data-driven monitoring capabilities (Guideline 8). Though these are directed at NCAs, their collective effect will result in a more uniform and responsive oversight, affecting the entities’ evaluation processes.

Finally, given the borderless nature of crypto markets, ESMA also highlights the importance of cross-border supervision. Guidelines 10 through 12 address how authorities should handle suspicious transaction reports (STORs), coordinating oversight across jurisdictions, and addressing challenges posed by third-country entities that may elude EU regulatory reach. 

Implementation and Compliance

While these guidelines are non-binding, they carry significant weight under Article 16(3) of the ESMA Regulation, which states that NCAs must make every effort to comply with and integrate them into their national legal or supervisory frameworks. 

The guidelines are being translated into all EU languages and will take effect three months after publication. NCAs must communicate within two months whether they comply, intend to comply despite current non-compliance, or have no intention to comply. In case of non-compliance, NCAs must justify their stance, and ESMA will publicly disclose this, ensuring transparency and accountability. Meanwhile, NCAs are encouraged to begin implementation ahead of formal adoption.

Implications for the Industry

ESMA’s guidelines not only mark an important step in the implementation of MiCA but also demonstrate the EU’s comprehensive approach to regulating the crypto-asset market. While directed at national regulators, the guidelines indicate insights into enforcement trends and emphasise critical areas of oversight focus, which can help companies anticipate regulatory actions. As the EU continues to deepen its integration in the crypto sector, these guidelines serve as a crucial tool in shaping the future of the digital economy in Europe.

From a regulatory standpoint, this reflects the EU’s intent to respond more effectively to the distinct risks of decentralised finance by aligning national practices and integrating crypto-specific risks into existing frameworks. For industry participants, the message is clear: early alignment with these expectations will be essential to navigate the emerging compliance landscape.

Crypto-asset regulations are complex and evolving rapidly. Staying informed is key. FiscalNote’s solutions help you track regulatory changes and respond confidently to shifting supervisory demands.