# MiFID II Related Articles

Europe doubles down on ‘same risk, same rules’ approach for crypto derivatives

Europe's securities watchdog ESMA has reaffirmed that crypto derivatives, particularly perpetual contracts, will be regulated under the same "same risk, same rules" framework as traditional high-risk financial products like CFDs. Regulatory treatment depends on a product's economic substance, not its name or marketing. This means leveraged crypto derivatives are subject to existing EU rules, including leverage caps, risk warnings, and investor protection measures under MiFID II. The statement serves as a regulatory reminder, not a new ban, emphasizing that crypto markets must integrate into the existing financial system under established safeguards. Firms must ensure compliance and avoid mass-market promotion of these high-risk products to retail investors.

ambcrypto02/24 22:35