Product Intervention Measures Clarified by CySEC
The European Securities and Markets Authority won’t govern over the cryptocurrency and blockchain industries anymore with their product intervention measures. Starting at the beginning of August, national regulators will begin enforcing jurisdiction-based regulation about crypto and blockchain products. Most of the federal regulators in the European Union will implement the same product intervention measures the ESMA created. However, regulators from Poland and Cyprus are using different criteria to favour markets into a new direction. These two nations are building a 50:1 high leverage category for experienced traders.
The Cyprus regulator is CySEC, and they’re expected to announce the final guidelines for their new national product intervention measures by July 31st. First, CySEC must meet with the National Competent Authority and the ESMA to receive approval for their changes. Both these Union-Wide Regulators will have to view and investigate the new proposal from CySEC. Any guidelines relating to clients or institutional investors that don’t suit the approval of NCA or ESMA will need to be altered.
Two Months until New Measures
CySEC has notified all investment firms operating in Cyprus that for two months, they’ll have to abide by the product intervention measures implemented by the ESMA. The official publication of the new measures created by CySEC will be released in two months, somewhere in the middle of September. The Cyprus Regulator will still need to implement fines if they find investment firms or brokerages disobeying the ESMA’s Product Measures.
The European Securities and Markets Authority will still regulate over advertising, purchasing, selling and distributing contracts-for-difference in a European Union State. Refusal to follow regulation will be considered an act of violation against European Law. CySEC will immediately enforce their legislative powers to dispose of any firm or brokerages committing criminal offences.
Since the arrival of the ESMA’s measures, brokerages across the Union has seen a significant decrease in trading volumes. The appearance of the new CFD proposals from Cyprus and Poland are eagerly anticipated by firms and institutional clients alike.