What is MiFID II and how does it apply to crypto in the EU?
MiFID II is the EU regulatory framework for financial instruments, including crypto derivatives. What it covers, what it does not, and which crypto exchanges hold a MiFID II authorisation today.
What is MiFID II?
The Markets in Financial Instruments Directive II - shortened to MiFID II - is the EU regulatory framework for investment services and financial instruments. It came into force on 3 January 2018, replacing MiFID I. The two relevant pieces of legislation are Directive 2014/65/EU and the accompanying Regulation (EU) 600/2014 (MiFIR). National competent authorities of every EEA member state supervise firms authorised under MiFID II in their jurisdiction.
What does MiFID II cover that MiCA does not?
MiFID II covers "financial instruments" as defined in Section C of Annex I to the Directive. The list is long and includes:
- Transferable securities (shares, bonds, depositary receipts, ETFs)
- Money-market instruments
- Units in collective investment undertakings (UCITS funds, AIFs)
- Options, futures, swaps, forwards and any other derivative contracts
- Financial contracts for differences (CFDs)
- Climate-related and other emission allowances
When the underlying asset of a derivative is a crypto-asset - Bitcoin, Ether, Solana, or any other - the derivative is a MiFID II financial instrument. The crypto-asset itself may be a MiCA-regulated crypto-asset. The derivative is not. The instruments are regulated under MiFID II.
Which crypto products fall under MiFID II?
The clearest cases:
- Crypto futures - including OKX's X-Perps (five-year expiry futures).
- Crypto perpetual contracts if offered to EEA residents; treatment varies but most regulators have indicated these are derivatives within MiFID II scope.
- Crypto options.
- Crypto contracts-for-difference (CFDs) offered by traditional CFD brokers (eToro, Plus500, IG, Saxo).
- Crypto ETNs / ETFs listed on regulated markets - these are transferable securities under MiFID II.
- Tokenised securities - tokens that represent shares, bonds, or other transferable securities.
What protections does MiFID II give crypto-derivative users?
The full list is in the MiCA vs MiFID II crypto perpetuals explainer. Headline protections:
- Client-asset segregation (Article 16(8))
- Appropriateness assessment for retail clients (Article 25(3))
- Best-execution duty (Article 27)
- Conduct of business rules and conflict-of-interest disclosure (Title II)
- Access to a national Investor Compensation Scheme (up to EUR 20,000 per investor in most member states)
- Right to lodge a complaint with the home-state regulator
Which exchanges are MiFID II-authorised for crypto derivatives?
As of , six crypto-native exchanges hold a MiFID II authorisation covering crypto derivatives in the EEA: Kraken (CySEC Cyprus, CIF 342/17), Coinbase (CySEC Cyprus, CIF 374/19), OKX (MFSA Malta), Crypto.com (CySEC Cyprus, CIF 344/17), Bitstamp (ATVP Slovenia, MTF), and Bitpanda (FMA Austria, CFDs on crypto). Long-established MiFID II CFD brokers (eToro, Plus500, IG) offer crypto-CFDs under their existing permissions but are not crypto-native exchanges.
See our full MiFID II derivatives register for per-firm authorisation details, product structures, and primary-source citations.