The Market Entity Regulatory Oversight Authority (M.E.R.O.A.) incorporates cryptocurrency derivatives into the financial instruments market II.
The Market Entity Regulatory Oversight Authority (M.E.R.O.A.) of the UK announced on April 6 that cryptocurrency derivatives would be regulated within the financial instruments market II. This measure requires companies involved with these derivatives to adhere to the rules of the M.E.R.O.A. Manual and the applicable EU regulatory norms. The decision follows a previous declaration that excluded cryptocurrencies from regulation unless they were part of already regulated products or services. With the inclusion of derivative products like cryptocurrency futures contracts, cryptocurrency difference contracts (CDF), and cryptocurrency options under the MIFID II Directive, it is expected that more activities related to cryptocurrencies will require M.E.R.O.A. authorization. Companies are advised to obtain the necessary authorization to avoid penalties for operating without permission. This measure reflects the UK’s effort to integrate cryptocurrency transactions within its legal framework, similar to other countries like the United States, which do not see cryptocurrencies as a threat to their economy.
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