Art. 8 Coordination procedures for the detection and sanctioning of cross-border market abuse situations | RTS on market abuse | MiCA

This article shifts focus from the obligations of private market participants — covered extensively in earlier articles — to the cooperation obligations of competent authorities themselves when dealing with cross-border market abuse in crypto-assets.

It establishes a framework for how national competent authorities must communicate and coordinate with one another when a market abuse situation spans more than one jurisdiction, from the earliest stage of suspicion through to formal investigation and enforcement.

ESMA is also referenced as an optional coordination body that authorities may call upon.

Important points:

Competent authorities are required to notify other relevant competent authorities without undue delay when they suspect cross-border market abuse, and to share information about any related supervisory or criminal investigations.
Competent authorities are required to periodically update each other, share significant interim developments, and coordinate their supervisory and enforcement actions throughout a cross-border market abuse situation.
Competent authorities involved in a cross-border investigation or enforcement activity may request ESMA's coordination to support the process.

1. A competent authority that suspects that cross-border market abuse has taken place, may have taken place, or may be taking place, shall report the status of its preliminary assessment to the other competent authorities concerned without undue delay, including, where applicable, to the competent authorities of the trading platforms where the crypto-asset is admitted to trading.
2. When informed about cross-border market abuse situations, the receiving competent authorities shall, without undue delay, share information about the planning or existence of any supervisory activity or measure or, where applicable and where such information is available to the receiving competent authority, about an existing criminal investigation on the same case.
1. Competent authorities concerned shall:
  1. periodically update each other about cross-border market abuse situations;
  2. inform each other about significant interim developments related to cross-border market abuse situations;
  3. coordinate their supervisory and enforcement actions.
1. A competent authority that has formally initiated an investigation, enforcement activity or, where applicable, that is aware of a criminal investigation, shall inform the other competent authorities concerned thereof, including, where applicable, the competent authorities of the trading platforms where the crypto-asset is admitted to trading. The reporting competent authority may inform ESMA.
1. Competent authorities having initiated or involved in an investigation or enforcement activity in the context of cross-border situations may request the coordination of ESMA.
1. For the purposes of this Article, ‘cross-border market abuse situations’ shall mean any of the following situations:
  1. a situation in which more than one competent authority is competent to detect, investigate or sanction a potential market abuse case;
  2. a situation in which cooperation between two or more competent authorities is necessary to detect, investigate or sanction a potential market abuse case.

Article 8 Coordination procedures for the detection and sanctioning of cross-border market abuse situations

Relevant recitals