ESMA warns crypto perpetual derivatives likely fall under CFD rules

CoinTelegraph

by Turner Wright

February 24, 2026

AI-Generated Deep Dive Summary

The European Securities and Markets Authority (ESMA) has issued a warning to companies marketing cryptocurrency derivatives as “perpetual futures” or “perpetual contracts.” These products, including those tied to cryptocurrencies like Bitcoin (BTC) and Ether (ETH), are likely subject to the same regulations as contracts for differences (CFDs). ESMA emphasized that such derivatives fall under the scope of MiCA (Markets in Crypto-Assets) framework and must adhere to strict regulatory requirements. This includes measures like leverage limits, mandatory risk warnings, margin close-out rules, negative balance protection, and prohibitions on offering monetary or non-monetary benefits to clients. The warning comes as part of ESMA’s ongoing efforts to ensure compliance with the MiCA framework, which governs crypto-asset markets in the EU. The authority urged companies to assess their investment vehicles providing leverage exposure to cryptocurrencies and take appropriate steps to manage conflicts of interest that may arise from offering these products. This move underscores the growing regulatory scrutiny of cryptocurrency derivatives, particularly those that mimic traditional financial instruments. For readers interested in the crypto space, this development highlights the increasing importance of understanding regulatory frameworks governing digital assets. The warning serves as a reminder that even though crypto derivatives are often marketed with terms like “perpetual futures,” they still fall under the same stringent rules as CFDs. This means companies offering these products must ensure compliance with leverage limits and risk disclosure requirements to avoid legal consequences. The ESMA notice also sheds light on the potential risks associated with marketing crypto derivatives as perpetual contracts. These products can create conflicts of interest for firms, particularly when it comes to aligning their financial incentives with client protection. By requiring companies to identify and manage such conflicts, ESMA aims to maintain market integrity while safeguarding investors from potentially harmful practices. In summary, the ESMA warning underscores the regulatory challenges faced by the cryptocurrency industry as it continues to evolve within traditional financial systems. For crypto users and investors, this development highlights the need for greater awareness of regulatory frameworks and the importance of choosing compliant and transparent platforms when engaging with crypto derivatives.

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Originally published on CoinTelegraph on 2/24/2026