European Securities and Markets Authority (ESMA) said that using maximum extractable value (MEV) for Blockchain Transactions is market abuse.
The latest regulatory proposals under MiCA by the European Securities and Markets Authority (ESMA) have identified MEV, a technique used by some crypto miners to maximize profits, as a potential form of market abuse.
The MEV Practice
Maximum extractable value (MEV) is a practice where blockchain operators reorder transactions to increase profits. Some policy experts argue that this may not necessarily be a bad thing.
ESMA Express Their Concerns
The ESMA has expressed concerns over MEV involving blockchain operators previewing the network’s transaction queue to extract additional profits for themselves. This can often involve reordering user transactions and even frontrunning them with new transactions before they are written to the chain’s ledger.
MEV has been described as an “invisible tax” on users as some methods for extra
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