Entities Offering Crypto Derivatives Likely Fall under Specific Rules: ESMA
ESMA warned that crypto perpetual derivatives likely qualify as CFDs, subjecting them to existing EU regulations.Summary
The European Securities and Markets Authority (ESMA) has issued a warning regarding crypto derivatives marketed as “perpetual futures or perpetual contracts.” ESMA stated these products likely fall under the existing regulations for Contracts for Difference (CFDs), which include leverage limits, risk warnings, and protections against negative balances. The agency urged companies to assess potential conflicts of interest and comply with applicable product intervention requirements. This move reflects ESMA’s increased scrutiny of the crypto market, particularly in the context of the upcoming Markets in Crypto Assets (MiCA) framework. Consensys’ Bill Hughes noted that simply rebranding these products won’t exempt them from CFD restrictions. Notably, Kraken launched perpetual futures products, but these are not currently available to EU clients.
(Source：Cointelegraph)