ESMA Considers Regulating Crypto Derivatives Under CFD Framework

The European Securities and Markets Authority (ESMA) is considering regulating cryptocurrency derivatives with leverage, such as perpetual futures linked to Bitcoin and Ethereum, under the existing Contracts for Difference (CFD) framework. According to NS3.AI, this move would introduce restrictions including leverage limits, mandatory risk disclosures, and enforced margin liquidations. Additionally, companies offering these products would be required to manage conflicts of interest to adhere to regulatory standards.