ESMA’s Crypto Crackdown: Perpetual Futures Under Fire!

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The European Securities and Markets Authority (ESMA) has issued a formal warning to investment firms, clarifying that derivatives on crypto-assets marketed as “perpetual futures” are likely subject to the strict regulatory protections governing Contracts for Differences (CFDs).

In a public statement released on February 24, 2026, the EU’s financial watchdog noted a sharp rise in the offering of leveraged perpetual contracts, particularly those tied to crypto-assets like bitcoin and ethereum. ESMA emphasized that the commercial label-whether a product is called a “perpetual future,” “perpetual swap,” or “rolling contract”-is irrelevant. If a product provides leveraged exposure to an underlying crypto-asset and is cash-settled, it must adhere to existing national product intervention measures.

By categorizing these crypto derivatives as CFDs, ESMA ensures they are bound by the rigorous 2018-style protections designed to prevent significant retail losses. This move follows reports that some platforms have processed over $1.2 trillion in monthly perpetual volume, often targeting retail users with high leverage that exceeds EU-authorized limits.

“Firms must conduct a careful legal analysis of these products… the commercial name provided by firms is irrelevant for the categorization,” ESMA stated in its directive.

🧭 FAQs

  • Why is ESMA targeting “perpetual futures” on crypto-assets now? Regulators have observed firms using the “perpetual” label to bypass CFD restrictions while offering the same high-risk, high- leverage exposure to retail clients. It’s like trying to sneak a chocolate cake into a diet-nope, not happening.

  • Does this affect institutional crypto traders? These specific product intervention measures primarily target retail clients. Professional and institutional traders typically operate under different leverage and protection frameworks. (Imagine a grown-up version of a candy store-no rules, just pure chaos.)

  • What happens if a firm continues to offer crypto perpetuals without CFD protections? National Competent Authorities (NCAs) across the EU have the power to sanction firms, fine them, or force the withdrawal of non-compliant products from the market. It’s the EU’s version of a bedtime story-only with more fines and fewer lullabies.

  • Is this related to the MiCA (Markets in Crypto-Assets) regulation? While MiCA regulates the crypto-asset market, ESMA’s statement clarifies how existing MiFID II and CFD rules apply to derivatives, closing a potential loophole for speculative instruments. Like a detective solving a mystery, but with more paperwork and fewer mysteries.

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2026-02-25 15:57