The European Securities and Markets Authority (ESMA) has issued a warning to entities operating in the European Union regarding derivatives tied to cryptocurrencies.
According to the ESMA notice, derivatives products marketed as 'perpetual futures or perpetual contracts' tied to cryptocurrencies like Bitcoin or Ether may fall within the scope of CFD rules.
The EU Authority emphasized that where these derivatives meet the definition of a CFD, they are subject to specific product intervention requirements, including leverage limits and mandatory risk warnings.