Gemini to offer Crypto Perpetuals under the new MiFID II license: Is CFD next?

Cryptocurrency Exchange Gemini, which recently selected Malta as its European hub, has received principle approval from the Malta Financial Services Authority (MFSA) for its investment company license.

Pan-European Derivative License

Once licenses are approved, the exchange can offer regulated options and futures, including Difference Agreements (CFD) equipment, across the European Economic Area (EEA) based on the Financial Instruments Directive (MIFID II).

The official announcement highlighted that Gemini will be offering permanent futures contracts, which are non-expiring futures contracts across the BLOC.

Additionally, Crypto Exchange pointed out that the MIFID II licensing is part of Europe’s expansion strategy, allowing it to expand its services for institutional and retail customers.

Gemini’s Head of Europe Mark Jennings said, “As crypto maturizes to an approved asset class, interest in crypto derivatives, particularly from institutions, has increased significantly in recent years.” Class offerings for. ”

Crypto exchanges move to derivatives

As the finance tycoon previously reported, Gemini acquired a Virtual Financial Asset (VFA) Service License from a Mediterranean Island regulator, making it a market hub for crypto assets (MICA) frameworks. It also holds a similar license in France.

However, these cryptographic licenses do not allow companies to provide crypto derivatives. Therefore, there is a MIFID II license.

Many crypto exchanges have recently acquired MIFID licenses to provide derivatives at the EEA. The financial giant previously reported exclusively that Coinbase had obtained a MiFID II license from the Cyprus unit that it had provided CFDs. Recently, Kraken obtained a similar license by purchasing a Cyprus company, but did not disclose either.

These crypto companies seem to be interested only in providing a lasting future for Crypto, but they can easily enter the CFD industry in the future. After acquiring CFD brokers in Australia, Crypto.com has already shown that such equipment is not off limits for crypto exchanges.