The post Europe doubles down on ‘same risk, same rules’ approach for crypto derivatives appeared on BitcoinEthereumNews.com.

Europe’s securities watchdog has reaffirmed that crypto derivatives offering leveraged exposure to digital assets will be regulated under the same framework as traditional high-risk financial products. This reinforces the bloc’s long-standing “same risk, same rules” doctrine. In a public statement, the European Securities and Markets Authority [ESMA] clarified that many crypto derivatives — particularly so-called perpetual contracts — already fall within the scope of existing Contract for Difference [CFD] product-intervention measures, regardless of how they are branded or marketed. Substance over labels in crypto derivatives ESMA’s message is that regulatory treatment depends on a product’s economic characteristics, not its name.  Crypto derivatives that provide leveraged long or short exposure, are cash-settled, or mirror the risk profile of CFDs, will be assessed under the same rules that apply to traditional speculative instruments. This means that calling a product a “perpetual future” or “perpetual contract” does not exempt it from EU financial regulation if its structure and risk profile align with CFDs. What the ‘same risk, same rules’ principle means Under the EU’s regulatory framework, the “same risk, same rules” principle is designed to ensure consistent investor protection across markets. ESMA’s statement reiterates that crypto assets do not receive special treatment simply because they are based on new technology. Where crypto derivatives are deemed CFDs, national product intervention measures apply. These include leverage caps, standardized risk warnings, margin close-out requirements, negative balance protection, and bans on trading incentives aimed at retail clients. Implications for crypto exchanges and brokers The clarification has direct implications for firms offering leveraged crypto products to EU retail investors. Platforms must ensure that their offerings comply with both CFD intervention rules and broader MiFID II investor-protection obligations. ESMA also highlighted product-governance expectations, noting that highly leveraged crypto derivatives typically have a very narrow target market.  Firms are expected…

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Filed under: News - @ February 25, 2026 1:21 am