The European Securities and Markets Authority (#ESMA ) considers MEVs to be a prime example of market abuse under MiCA rules.

EU cryptocurrency regulation expert Patrick Hansen was quoted in X of ESMA's draft document:

"...known as maximum extractable value (MEV), whereby a miner/validator can take advantage of its ability to arbitrarily rearrange the order of transactions in order to preemptively execute a certain operation and therefore make a profit, clearly indicates the existence of market abuse".

According to the report, virtually all regulated cryptocurrency companies in the EU like exchanges and brokers will be required to detect cases of MEVs and report them in comprehensive "suspicious transaction or order reports." According to Hansen, the form template alone took ESMA six pages to complete.

Market participants involved in MEVs could be subject to investigation and enforcement action in the EU. ESMA also envisages cooperation with authorities in other jurisdictions to penalize violators.

"So far, these are only draft standards, but they will be finalized in the next few months. ESMA encourages stakeholders to provide feedback on this proposal by June 25," Hansen noted, calling for participation in the discussion.

Recall that #Ethereum co-founder Vitalik Buterin called #MEV one of the three main problems threatening the decentralization of the network.