ESMA Tightens Oversight of Crypto Derivatives Amid Leveraged Trading Boom
The European Securities and Markets Authority (ESMA) has escalated regulatory scrutiny of crypto-linked derivatives, explicitly classifying perpetual futures contracts as Contracts for Difference (CFDs). This brings them under existing EU leverage limits and investor protection frameworks.
Firms offering Bitcoin and ethereum derivatives face heightened compliance requirements including mandatory risk disclosures and negative balance protection. ESMA warned against marketing tactics that incentivize retail participation in these high-risk products.
The move comes as Leveraged trading volumes surge across perpetual contracts. Market observers note this signals stricter enforcement ahead of MiCA implementation, particularly for complex products attempting regulatory arbitrage.
