RATE Group | Cryptocurrency CFDs Limit Comes Into Force in EU
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Cryptocurrency CFDs Limit Comes Into Force in EU

01 Aug Cryptocurrency CFDs Limit Comes Into Force in EU

Posted at 23:39h in Cryptocurrency News by

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The European Securities and Market Authority (ESMA) 2:1 restriction will last three months, starting on August 1.

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Cryptocurrency contracts for difference (CFDs) limit 2:1 was enforced on Wednesday in the European Union (EU). The measure will continue at least three months with possible renewal in November, the EU regulator European Securities and Market Authority (ESMA) said.

ESMA introduced the crypto restriction as part of wider intervention measures to CFDs and binary options (BOs) for retail investors, including different limits for CFDs and a ban for BOs. The contracts for difference restrictions are based on volatility and the virtual currency is seen as the most unstable as its leverage limit is set at 2:1. For comparison, the measure for fiat money CFDs is 30:1.

“This pan-EU approach is the most appropriate way to address this major investor protection issue. NCAs will monitor the impact of these measures during their application and will assess, with ESMA, what next…

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