Ensuring fairness and integrity in the crypto asset market : exploring MiCA鈥檚 approach to market abuse

Abstract

This thesis examines the adequacy of the Markets in Crypto Assets (MiCA) regulation in countering market abuse within the crypto asset sector, amidst its rapid growth and the unique challenges it presents. It scrutinizes the extent to which MiCA's market abuse provisions can effectively safeguard market integrity and investor confidence against the backdrop of decentralized technologies, high volatility, and emerging forms of market manipulation unique to the crypto world. Through a detailed analysis of MiCA's regulatory framework, the study aims to assess whether MiCA strikes an appropriate balance between fostering innovation and ensuring market fairness and transparency. The research methodology employs a black-letter approach, analyzing legal texts and existing literature to evaluate the regulation's potential impact on preventing market abuse in the crypto space. The thesis also explores traditional and novel forms of market manipulation, such as wash trading, pump and dump schemes, and the implications of decentralized trading platforms on regulatory oversight. It concludes with a reflection on the effectiveness of MiCA's provisions and proposes areas for future research, particularly in adapting regulatory mechanisms to keep pace with technological advancements and emerging market abuse tactics in the digital asset landscape.