Quick summary
- MiFID II is the EU’s rulebook for investment services and securities markets. It boosts transparency, reporting, and investor protection across the EU.
- Spot crypto trading on exchanges like CoinW is generally not in MiFID II scope unless the cryptoasset is classed as a MiFID financial instrument (e.g., certain tokenised securities) or you use an EU investment firm for crypto-linked derivatives.
- When MiFID II does apply (e.g., EU investment firms; crypto-as-securities; derivatives), you should expect cost & charges disclosures, best-execution reporting, appropriateness/suitability checks, product governance, and inducement restrictions.
What is MiFID II?
MiFID II (Directive 2014/65/EU) modernises EU securities-market rules and works alongside MiFIR to make markets fair, transparent and integrated, while strengthening investor protection. ESMA’s Interactive Single Rulebook hosts the legal text, guidance (Q&A, RTS/ITS, guidelines) and scope/definitions.
In plain English: more pre- and post-trade transparency, stricter conduct rules for firms, richer disclosures for clients, and detailed reporting to regulators.
Key MiFID II protections that users may encounter
Costs & charges disclosure
Firms must itemise all costs (product + service) and show the aggregated impact on returns, ex-ante and ex-post.
Best execution
Firms must take all sufficient steps to get the best possible result (price, speed, likelihood of execution, etc.) and publish execution-quality information.
Inducements
Stricter rules on fees/commissions from third parties to mitigate conflicts and ensure benefits to clients are justified and disclosed.
Product governance
Manufacturers and distributors must define a target market, test products, and ensure distribution to suitable clients.
Client categorisation & suitability
Protection levels differ for retail, professional and eligible counterparties; firms assess appropriateness/suitability before recommending complex products.
Market transparency & reporting
Expanded pre/post-trade transparency beyond equities to bonds and derivatives; extensive transaction reporting to regulators.
Does MiFID II apply to crypto?
MiFID II covers financial instruments (e.g., shares, bonds, derivatives). A cryptoasset only falls under MiFID II if it qualifies as a financial instrument—such as a tokenised security or certain derivatives. ESMA maintains the scope/definitions and has worked on guidance for when cryptoassets qualify.
How MiFID II may affect CoinW users
CoinW is a global crypto exchange. Whether your activity is touched by MiFID II depends on the product and the service provider:
- Spot crypto on CoinW: If the asset isn’t a MiFID financial instrument, MiFID II does not directly apply to that spot trade. Normal exchange terms apply.
- Crypto-linked derivatives or tokenised securities: If you access these via an EU-authorised investment firm (directly or through a partner), MiFID II obligations kick in. Expect cost & charges disclosures, best-execution policies, appropriateness/suitability assessments, and inducement disclosures.
- Marketing & product governance: Where MiFID II applies, distributors must define a target market and ensure products are sold to the right clients, with robust oversight.
- Your client category: Retail clients receive the strongest protections; professional clients and eligible counterparties have different protections. Firms must categorise you and adjust disclosures/assessments accordingly.
For the latest official wording and scope, consult ESMA’s MiFID II rulebook and the European Commission’s overview pages (linked above).
Practical checklist for EU-based CoinW users
- Check whether the product is a MiFID financial instrument (e.g., a tokenised bond/equity or a crypto derivative). If yes, MiFID II duties apply to the EU firm serving you.
- Look for ex-ante cost & charges breakdowns and later ex-post statements.
- Review the firm’s best-execution policy and execution quality reports.
- Expect appropriateness/suitability checks for complex or advised products.
- Watch for inducement disclosures and conflicts-of-interest policies.
- Confirm the firm’s authorisation status in the EU and which entity is serving you.
FAQ
Is MiFID II the same as MiFIR?
No. MiFID II is a directive (transposed by Member States) and MiFIR is a directly applicable regulation. They work together: MiFID II sets conduct and investor-protection duties; MiFIR provides trading and transparency mechanics.
Where can I read the official rules?
Start with ESMA’s MiFID II Interactive Single Rulebook and the European Commission page on investment services and regulated markets.
What protections matter most to me as a retail client?
Clear fee disclosures, best execution, appropriateness/suitability checks for complex products, and product governance obligations on manufacturers/distributors.
