Pooled Order Books in the Crosshairs as EU Regulators Look to Tighten MiCA Oversight

Why It Matters

Restricting shared order books could reduce market liquidity and increase trading costs for European crypto participants, affecting the competitiveness of EU exchanges. It also marks a shift toward more centralized, uniform crypto regulation across the EU, influencing how firms operate cross‑border in the region.

Summary

EU regulators, led by the European Securities and Markets Authority (ESMA), are preparing to tighten oversight of pooled order books under the MiCA framework, seeking an explicit ban on cross‑border order‑book sharing. France’s AMF, along with Austria’s FMA and Italy’s Consob, have urged ESMA to embed local‑order‑book rules in MiCA to keep trading activity under EU supervision. The move would compel crypto exchanges to separate EU and non‑EU liquidity pools, potentially fragmenting liquidity and widening spreads, while regulators argue it ensures a level playing field across the bloc.