EU Tightens Crypto Spot-Market Oversight, but Derivatives Loophole Persists

The European Union’s Markets in Crypto-Assets Regulation, or MiCA, establishes passportable licensing and investor protections for crypto-asset service providers, but primarily covers spot markets. Derivatives such as perpetual contracts remain governed by MiFID II and national regulators. Glassnode says derivatives account for about 80% of crypto trading volume, raising concerns that the regulatory gap could push retail investors toward offshore platforms offering high leverage.

MiCA’s transition period of up to 18 months expired on July 1, 2026, and the EU requires unauthorized crypto-asset service providers to cease operations. Hyperliquid can still offer up to 50 times leverage on bitcoin, however, while Aster offers as much as 200 times. European Securities and Markets Authority data showed that 74%–89% of retail CFD accounts across the EU lost money in 2018, with average losses of €1,600–€29,000 per investor.