Regulators Watch Closely as Coinbase Expands Derivatives Offerings
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As Coinbase rolls out new futures products in Europe, regulators are closely monitoring the fast-growing market for crypto derivatives. The European Securities and Markets Authority (ESMA) recently warned that many so-called perpetual futures may fall under existing rules governing contracts for difference (CFDs).
If classified as CFDs, these products could face stricter requirements such as leverage limits, risk warnings, and negative balance protection for traders. Despite the regulatory scrutiny, Coinbase says the new derivatives are a key step toward its long-term vision of building an “exchange for everything,” where users can trade cryptocurrencies and traditional assets on the same platform.