The European Securities and Markets Authority (ESMA) has recently addressed concerns regarding the compliance of shared order book models with the Markets in Crypto-Assets Regulation (MiCA). In a Q&A published on June 20, 2025, ESMA clarified that when two or more crypto-asset platforms merge their individual order books into a single, unified order book from which orders are matched—a practice known as the shared order book model—it breaches MiCA’s authorization requirements if non-EU trading platforms are involved. (esma.europa.eu)
Understanding the Shared Order Book Model
A shared order book model involves multiple crypto-asset platforms combining their order books to create a unified platform for matching buy and sell orders. This approach aims to enhance liquidity and provide users with access to a broader range of trading opportunities. However, when such models incorporate non-EU trading platforms, they may circumvent MiCA’s regulatory framework, which is designed to ensure investor protection and market integrity within the EU.
Investor Identification, Introduction, and negotiation.
ESMA’s Clarification on MiCA Compliance
ESMA’s recent clarification emphasizes that CASPs operating under MiCA must adhere to specific authorization requirements. The inclusion of non-EU trading platforms in shared order book models can lead to non-compliance with MiCA, as it may result in regulatory arbitrage and undermine the objectives of the regulation. ESMA’s guidance aims to prevent such practices and ensure that all CASPs operating within the EU market maintain a level playing field.
Implications for Crypto-Asset Service Providers
CASPs seeking authorization under MiCA must carefully evaluate their business models to ensure compliance with the regulation. Incorporating non-EU trading platforms into shared order book models may necessitate adjustments to their operational structures to align with MiCA’s requirements. By adhering to ESMA’s guidance, CASPs can contribute to a more transparent and secure crypto-asset market within the EU.
References
- ESMA puts forward a Q&A on the shared order book model under MiCA. (esma.europa.eu)
- ESMA delivers opinion on global crypto firms using their non-EU execution venues. (esma.europa.eu)
- ESMA finalises first rules on crypto-asset service providers. (esma.europa.eu)
- ESMA Warns on Non-EU Crypto Venues: NCAs to Monitor MiCA Compliance. (financemagnates.com)
- ESMA’s Opinion on broker models: Harmonising Crypto-Asset Regulation. (harneys.com)
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