Why Are Most Major Crypto Options Exchanges Structured as European-Style?

Most major crypto options exchanges, like Deribit and CME Bitcoin options, use European-style settlement because it simplifies the valuation and risk management process. The lack of an early exercise feature eliminates the need to calculate the early exercise premium, making the Black-Scholes model more directly applicable.

This simplification also reduces complexity for market makers and allows for easier margining and clearing on the exchange.