ESMA Issues Stern Warning for Leveraged Crypto Derivatives

ESMA's CFD Warning on Perpetual Futures Products

The European Securities and Markets Authority (ESMA) issued a warning to institutions to assess investment vehicles providing leveraged cryptocurrency exposure in the European Union. In the announcement made on Tuesday, it stated that derivative products marketed as 'perpetual futures' or 'perpetual contracts' linked to cryptocurrencies like Bitcoin (BTC) or Ether (ETH) fall within the scope of contracts for difference (CFD). ESMA emphasized that when these products meet the CFD definition, they are subject to intervention measures such as leverage limits, mandatory risk warnings, margin closing, negative balance protection, and prohibition of non-monetary benefits. Institutions are required to manage conflicts of interest in offering these products.

Source: ESMA

Technical Details of CFD Restrictions and MiCA Impact

ESMA is conducting investor protection supervision under the MiCA framework and had previously issued similar warnings to financial influencers. Bill Hughes from Consensys stated that the ESMA warning closely monitors leveraged crypto derivatives in Europe and that product renamings will not evade CFD restrictions. These rules aim to prevent chain liquidations by limiting the risks of highly leveraged trades.

Kraken Tokenized Perpetual Futures and EU Exclusion

On the same day, Kraken announced that it listed tokenized perpetual futures products linked to major stock indices, gold ETFs, and companies in more than 110 countries (excluding the US), but clarified that they are not offered to EU customers. This move demonstrates the direct impact of ESMA warnings and increases regulatory pressure in the BTC futures market.

BTC Market Risks and Goldman Sachs Crash Warning

Under regulatory pressure, BTC price is trading at 64,145.11 USD (-1.17% 24s). RSI at 30.63 in oversold territory, downtrend continues (Supertrend bearish, EMA20: 69,522). Supports: S1 60,051 (strong, -6.18%), S2 63,868 (medium). Resistances: R1 64,323 (strong, +0.49%). Goldman Sachs CEO warns of a severe BTC crash and chain liquidations, while MicroStrategy's Saylor continues BTC purchases with ordinary shares. In this environment, leveraged products are extra risky; investors should follow detailed ETH analysis.