Firms must follow intervention rules, including leverage limits, risk warnings, margin close-outs, and negative balance protection for crypto CFDs.
The European Securities and Markets Authority (ESMA) has clarified that many crypto-perpetual contracts, including those for Bitcoin and Ether, are likely to be classified as contracts for difference (CFDs).
Due to their leverage, complexity, and risk, these products should target a narrow audience, with distribution strategies aligned accordingly.
The announcement came as Kraken launched perpetual futures for ten tokenised assets, including major indices, gold, and top tech and crypto stocks. ESMA warned that mass marketing or promotions targeting…
