Ethereum

Stablecoin

Patrick

PancakeSwap

Uniswap

<div class="cryptonews"> 
 <p class="is-style-lead">Patrick Hansen, a Circle executive, is concerned that entities involved in Maximal Extractable Value (MEV) <a rel="noopener noreferrer nofollow" title="activities" href="https://thebittimes.com/tag/activities.html">activities</a> on Ethereum and other smart contract platforms might be banned from operating in the European Union (EU) once the Markets in Cryptoassets (MiCA) regulation comes into effect</p> 
 <p>MiCA, adopted by the European Parliament on April 20, 2023, marks a significant milestone as the first clear legislation governing the issuance and provision of services related to crypto-assets and stablecoins. Its enforcement is scheduled between mid-2024 and early 2025.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> MiCA explained: What does the EU’s first crypto regulation mean for the industry? 
 </div> 
 <p>Although progressive, MiCA’s Article 92, which aims to prevent and <a rel="noopener noreferrer nofollow" title="prohibit" href="https://thebittimes.com/tag/prohibit.html">prohibit</a> market abuse involving crypto-assets, is particularly interesting. Specifically, lawyers and industry stakeholders have drawn attention to this provision, as it holds potential implications for MEV participants operating within the EU.</p> 
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
  <div class="wp-block-embed__wrapper"> 
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
    <p lang="en" dir="ltr">Flashbots &amp; everyone else involved in MEV should pay close attention to MiCA Art. 92 that could deem MEV to be illegal market abuse (transaction ordering).<br><br>ESMA will publish technical standards on the topic in Q1 24. I highly encourage people involved to engage early-on. pic.twitter.com/zDa5E9BY7L</p>— Patrick Hansen (@paddi_hansen) July 29, 2023 
   </blockquote> 
  </div> 
 </figure> 
 <p>Title VI of MiCA highlights the “prevention and <a rel="noopener noreferrer nofollow" title="prohibit" href="https://thebittimes.com/tag/prohibit.html">prohibit</a>ion of market abuse involving crypto-assets” and applies to all transactions, orders, or behaviors related to any crypto-asset traded on exchanges. Notably, this regulation covers <a rel="noopener noreferrer nofollow" title="activities" href="https://thebittimes.com/tag/activities.html">activities</a> regardless of whether they occur on a trading platform like Kraken, for example, or within the on-chain ecosystem like Uniswap or PancakeSwap.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> PancakeSwap aims to enhance platform availability with Google Cloud integration 
 </div> 
 <p>Based on this interpretation, MEV, the practice of extracting the maximum value from block production by manipulating transaction order, is now under scrutiny due to MiCA. The regulation allows agencies to examine certain MEV practices that could be construed as market manipulation, mainly if they involve artificial price inflation or deceptive transactions.</p> 
 <p>Beyond market manipulation, MiCA also addresses wash trading, another form of illegal market abuse that deliberately inflates trading volumes. Observers say this may present challenges for Crypto-Asset Service Providers (CASPs) and platforms, including exchanges approved to operate in the region, ensuring market liquidity for leading tokens while concurrently complying with the stringent MiCA requirements.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Stablecoin issuers in Europe advised to start complying before 2024 
 </div> 
 <p>Taking account of this broad interpretation, though enforcement is still months away, experts predict heightened scrutiny for MEV teams within the EU. If MiCA bans MEV practices in Europe, its effect might be filled across the decentralized finance (defi) and crypto ecosystem, possibly impacting liquidity.</p> 
 <p>Still, MiCA’s proactive approach to regulating market abuse in the crypto sphere underscores the EU’s commitment to managing the rapidly evolving digital asset landscape. Therefore, as the global community watches the impact of MiCA’s implementation, other jurisdictions will likely draw insights and adapt their regulatory frameworks accordingly.</p> 
 <p>In a recent Series B funding round led by Paradigm, Flashbots, a research and development startup focused on Ethereum, secured $60 million. The funding will be used to continue developing their Single Unifying Auction for Value Expression (SUAVE) network, which aims to reduce the negative impact of MEV.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Flashbots becomes unicorn after raising $60 million 
 </div> <span class="google-news-banner__label">Follow Us on Google News</span> 
</div>

EU’s MiCA rules could prohibit MEV activities on Ethereum

TheBitTimes

Inne artykuły opublikowane 1 sie 2023

Cardano Price Prediction 2023: Will ADA Price Thrust Upwards?

US Senate Passes NDAA with Implications for Cryptocurrency Industry

SEC Urged By Grayscale To Simultaneously Approve Multiple Bitcoin ETFs

Crypto Biz: Elon Musk’s X targets financial services, PacWest emergency rescue and more

Shiba Inu Unleashes Global Birthday Bash for SHIB Community

Tim Draper believes Bitcoin can reform global commerce

Zapisz się na bezpłatny newsletter i otrzymuj codzień aktualności ze świata kryptowalut!