CoinWorld News reports that the European Securities and Markets Authority (ESMA) has issued a notice reminding relevant entities to assess investment tools that provide cryptocurrency leverage exposure. ESMA states that including derivative products marketed as "perpetual futures or perpetual contracts," such as products linked to Bitcoin or Ethereum, are very likely to fall within the scope of the CFD (Contract for Difference) intervention measures. ESMA emphasizes that derivatives meeting the CFD definition will be subject to related product intervention requirements, including leverage limits, mandatory risk warnings, margin close-outs, and negative balance protection, as well as bans on monetary and non-monetary benefits. As the regulatory authority for the EU's crypto asset market under the Markets in Crypto-Assets Regulation (MiCA), ESMA urges companies to take appropriate measures to identify, prevent, or manage potential conflicts of interest arising from offering these products.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
CoinWorld News reports that the European Securities and Markets Authority (ESMA) has issued a notice reminding relevant entities to assess investment tools that provide cryptocurrency leverage exposure. ESMA states that including derivative products marketed as "perpetual futures or perpetual contracts," such as products linked to Bitcoin or Ethereum, are very likely to fall within the scope of the CFD (Contract for Difference) intervention measures. ESMA emphasizes that derivatives meeting the CFD definition will be subject to related product intervention requirements, including leverage limits, mandatory risk warnings, margin close-outs, and negative balance protection, as well as bans on monetary and non-monetary benefits. As the regulatory authority for the EU's crypto asset market under the Markets in Crypto-Assets Regulation (MiCA), ESMA urges companies to take appropriate measures to identify, prevent, or manage potential conflicts of interest arising from offering these products.