ESMA clips perpetual futures with CFD limits

Europe’s top securities regulator warned that perpetual futures and similar perpetual contracts popular in crypto trading are very likely covered by existing EU rules on contracts for differences (CFDs), no matter how firms brand them.

The European Securities and Markets Authority (ESMA) said investment firms must assess whether these products fall within the scope of the bloc’s CFD product intervention regime.

If they do, firms must apply the full CFD rulebook, including leverage limits, standardized risk warnings, margin close-out rules, negative balance protection.

Can this latest directive kill crypto perpetuals contracts in the region altogether? European providers currently offer up to…