French Regulator Says No to Online Crypto Derivatives Ads
The AMF’s missive is the latest from the bureau on this issue of cryptocurrencies, coming months when it first weighed in initial coin offerings (ICOs).
France’s stock market regulator published a statement regarding cryptocurrency-tied derivatives on Thursday, which includes a curb on the promotion of these products.
Bitcoin and French flag picture via Shutterstock
The EU’s Markets in Financial Instruments Directive (MiFID II) is an update to previous laws, together with the stated aim of providing greater transparency over asset classes in the title of investor protection.
The European Securities and Markets Authority (ESMA) is exploring if these contracts comply with MiFID principles, and declared in January that it had been looking for public input on potential rule changes.
Other regulatory bodies inside the EU have been looking into the issue of crypto derivatives as well.
The chief in blockchain information, CoinDesk is an independent media outlet which strives for the highest journalistic standards and standards by a stringent group of editorial policies. Perhaps a story or breaking news suggestion to send to our journalists? Get in touch with us at firstname.lastname@example.org.
The bureau stated:
Disclaimer: This article should not be chosen as, and is not meant to supply, investment information. Before investing in any cryptocurrency please conduct your own thorough research.
The effort, according to announcements at the time, was geared toward “offering to those carriers of jobs a frame allowing the maturation of their operations and to guarantee the security of actors and investors wanting to engage.”
In its announcement, L’Autorite Des Marches Financiers (AMF) stated that trading platforms should not be permitted to advertise cryptocurrency derivative products independently, per regulations which pay derivatives more widely. A review process was followed by the book, as stated by the AMF.
“The AMF concludes that a cash-settled cryptocurrency contract may be eligible as a derivative, despite the legal eligibility of a cryptocurrency. As a result, online platforms that provide cryptocurrency derivatives fall within the reach of MiFID 2 and must therefore comply with the authorisation, conduct of business rules, and the EMIR trade reporting responsibility into a trade repository. Most importantly, these products are subject to the terms of the Sapin 2 law, and notably the ban of advertisements for certain financial contracts”