The European Securities and Markets Authority (ESMA) is taking measures to tighten the policy on crypto-currency financial instruments. This is stated in the official message of the regulator.
ESMA decided to increase the requirements for providing so-called "CFDs" related to crypto-currencies to 2: 1. This means that investors are required to pre-pay 50% of the contract value. It is also reported that this measure is temporary.
Earlier this year, ESMA consulted with the public on this issue, stating that the volatility of the Crypto-currency as the underlying CFD asset is a big threat to the safety of retail investors. Previously, the ratio for CFD deals was 5: 1, that is, investors paid only 20% of the full value of the contract. As part of the discussion, the European regulator proposed either to change the ratio to 2: 1 or 1: 1, or even to prohibit all transactions with the relevant derivatives, as well as their advertising. The official ESMA statement says:
"Because of the specific characteristics of the Crypto-currency as a class of assets in the financial instruments market, such as the CFD, close supervision will be initiated." If necessary, ESMA will also consider the possibility of stricter measures. "
Recall that the Office of Financial Supervision UK in October 2017 issued an official statement, warning investors about the risks of CFD.
Congratulations @pashadat! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPDownvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit