European regulator tightens requirements for cryptocurrency derivatives
European Securities and Financial Markets Service (ESMA) Tightens Requirements For Cryptocurrency Derivatives Contracts.
European regulator in this Tuesday reported, what took decision temporarily increase the demand for securing cryptocurrency “contracts for difference” (CFD) up to 2: 1 level. Others in words, from now on, investors are required to contribute at least 50% from contract amount of own funds.
In January, the department initiated a series of public consultations on this issue and as a result came to the conclusion that the volatility of cryptocurrencies used in quality basic asset in some CFDs, poses a serious threat to the protection of the interests of individual investors.
“Due to the special characteristics of cryptocurrencies as an asset class, for the market financial instruments providing access to cryptocurrencies, such as CFDs, will be strict controls are established and ESMA will review possibility tightening requirements, if there will be such a need, “the regulator said in a statement.
The new requirements come into force amid growing interest from individual investors in cryptocurrency derivatives, with which an increasing number of brokers and dealers are starting to operate.
So, in Monday Swiss bank Dukascopy announced the launch of CFDs on couple bitcoin/ USD for individual accounts clients. In future company intends to propose his clients possibility work directly with cryptocurrencies.