France Cracks Down on Bitcoin Derivatives
Feb 24, 2018 Posted / 3990 Views
Autorité des marchés financiers(AMF) is an independent France stock market governing body. It has been observing various exchange platforms introducing cryptocurrency based derivatives such as binary projects, agreements and derivative products assigned to cryptocurrency major players such as Bitcoin and Ethereum. In response to the latest trading, the AMF commented that all such merchandising will be suppressed including unregulated cryptocurrencies.
“The AMF concludes that a cash-settled cryptocurrency contract may qualify as a derivative, irrespective of the legal qualification of a cryptocurrency, As a result, online platforms which offer cryptocurrency derivatives fall within the scope of MiFID 2 and must, therefore, comply with the authorisation, conduct of business rules, and the EMIR trade reporting obligation to a trade repository.” – AMF said in a statement
Further AMF stated that all regulated organizations are prohibited from promoting their products through electronic media or new media.
As per Bloomberg report, two French trading platforms named Plus500 Ltd. and IG Group Holdings Plc. accounted a rise in their quarterly earnings which they attributed to cryptocurrency futures and derivatives products. To such platforms, the French regulators have advised to report to their business reporting timely and discontinue advertising their product on electronic media.
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The concern regarding binary options has been presented by the European Securities and Markets Authority (ESMA) as well in January where the regulatory body was in talks to set a regulatory framework for the distribution of Binary options in the European territory.
On the very same day, AMF published a letter summarizing 82 comments of France individuals stating concern about ICOs. As per agency reports, the majority of members including digital economy players, finance professionals, market infrastructures, and law firms were of the view to bound the new form of fundraising in legal chains.
The governing bodies of European countries like France and Germany are stressing on passing the ordinance for the circulation of Bitcoins and other virtual coins as economic chiefs believe that cryptocurrencies may pose a financial threat to investors in future.
Through latest proposed regulations the organization aims to eliminate money laundering, tax evasion and prohibit illegitimate tradings. In a letter sent by finance ministers of France and Germany, the officials have described the threats and dangers that can be addressed in future due to unregulated virtual tokens. In addition to it, they have also mentioned about the benefits of recent innovation, blockchain technology to industries and administration sector.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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