ESMA Reaffirms Regulation of Crypto Derivatives Under Existing Framework

The European Securities and Markets Authority (ESMA) has reaffirmed its stance on regulating crypto derivatives, stating that they will be subject to the same rules as traditional high-risk financial products.

This means that firms offering leveraged crypto products to EU retail investors must comply with existing CFD intervention rules and broader MiFID II investor-protection obligations. The clarification does not introduce new restrictions but serves as a reminder of existing regulations.

The ESMA's stance is in line with the 'same risk, same rules' principle, which aims to ensure consistent investor protection across markets. This principle means that regulatory treatment depends on a product's economic characteristics, not its name or branding.