Europe is closing the door on offshore crypto, but it’s leaving the riskiest window open
CoinDesk 2026-07-01 14:00:00
Context: Europe is tightening its regulations on offshore cryptocurrency operations, but a significant loophole remains in the oversight of the crypto derivatives market. The Markets in Crypto-Assets (MiCA) regulation, a key piece of legislation in this effort, has been criticized for not adequately addressing the giant crypto derivatives market. This gap in regulation could pose serious risks to the financial system, according to industry experts.
Key Facts
- The Markets in Crypto-Assets (MiCA) regulation, a cornerstone of Europe's efforts to regulate cryptocurrency, was not designed to address the massive crypto derivatives market, which could leave the financial system exposed to significant risks.
- Patrick Gruhn, founder and chief executive of Perpetuals.com, has raised concerns that the current regulatory framework leaves a critical gap in oversight, particularly in the crypto derivatives market.
- The crypto derivatives market, a sector that allows investors to bet on the future value of cryptocurrencies, remains largely unaddressed by MiCA, potentially leaving it open to riskier activities that could destabilize the financial system.