The “crypto off-chain data” that the ESMA is seeking is information from spot and derivatives deals made at centralized exchanges or over-the-counter (OTC) cryptocurrency trading platforms.
The securities watchdog of the European Union has begun to impose additional inspection of crypto transactions as it continues to sharpen its attention on the regulation of cryptocurrencies.
The European Securities and Markets Authority (ESMA) released a public tender document on Tuesday with the goal of gathering more data on trade data related to cryptocurrency transactions.
The agency is particularly interested in cryptocurrency off-chain data, or transactions involving cryptocurrencies that do not come from a blockchain. Such transactions, according to ESMA, include derivatives and spot trading at centralized exchanges or over-the-counter trading platforms.
“The coverage should encompass all major exchanges and crypto assets so that it provides a fair representation of the crypto market landscape,” the document reads. The ESMA pointed out that crypto data providers should update their data on a daily basis, stating:
“Data should be available with daily frequency and include access to order books where to see spreads and liquidity across exchanges and trading pairs — in fiat and crypto.”
According to the ESMA, the contract ceiling is 100,000 euros ($102,000), which corresponds to the maximum term of the four-year framework contract. Natural and legal people were invited to participate in the tender by August 17 by the regulator.
The announcement follows a decision by the European Council to establish a separate Anti-Money Laundering (AML) authority to regulate specific cryptocurrency asset service providers in late June 2022. To “put a stop to the wild west of uncontrolled cryptocurrency,” the new regulator is anticipated to keep an eye on “high-risk and cross-border financial companies,” including cryptocurrency enterprises.
