Are business models relying on miner extractable value (MEV) intact under MiCA?
Channel: Compliance Risk Management
Date: 2022-07-19

On June 16th, 2022, the BIS published its Bulletin No 58 on MEV (Miner Extractable Value). Raphael Auer and his colleagues point out that Ethereum and other decentralised finance (DeFi) protocols rely on miners as intermediaries. They can chose which transactions the add and in which order. This allows miners to generate profit (MEV) via front-running and sandwich trades.

In this video Andreas Trapp and Hartmut Renz discuss the implications of the BIS Bulletin. Following a brief introduction of Hartmut, Andreas summarizes the technological background of MEV and asks the question: Do business models that rely on MEV have a future under the upcomming european regulatory framework for cryptoassets (MiCA)?