European Securities and Markets Authority: Cryptocurrency perpetual derivatives may be subject to CFD regulations

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Deep Tide TechFlow News, February 25 — According to Cointelegraph, the European Securities and Markets Authority (ESMA) has issued a notice reminding relevant entities to assess investment products that offer cryptocurrency leverage exposure. ESMA stated that derivatives products marketed as “perpetual futures or perpetual contracts,” such as those linked to Bitcoin or Ethereum, are likely to fall under the scope of CFD (Contract for Difference) intervention measures.

ESMA emphasized that derivatives meeting the CFD definition will be subject to related product intervention requirements, including leverage limits, mandatory risk warnings, margin close-outs, negative balance protection, and 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.

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