European Union to tighten MiCA regulation or ban order book sharing with non-European Union exchanges

The European Securities and Markets Authority (ESMA) is preparing to strengthen and centralize the regulation of the European Union crypto-asset market, further harmonizing the implementation of MiCA (Crypto Asset Market Regulation). The French Financial Supervisory Authority (AMF) and other regulators have called for the MiCA framework to clearly stipulate that trading and execution activities, including local order books, must be located in the European Union and subject to local supervision. ESMA's move may mean that European Union crypto platforms are prohibited from sharing order books with non-European Union, non-MiCA regulated exchanges to ensure regulatory consistency.