The Autorité des marchés financiers (AMF) issued a statement on Thursday (February 22nd) stating that cryptocurrency derivatives should be regulated by the new financial reforms of the European Union in January 2018.
Since derivatives can not be advertised electronically, the AMF also states that online advertisements for cryptocurrency derivatives are not permitted.
The AMF refers to the new version of the Markets in Financial Instruments Directive (MiFID 2), whose framework defines the derivatives to be regulated, such as options, futures, swaps or forwards, as well as a list of assets corresponding underlyings.
The AMF has begun investigating the legal definition of both derivative and underlying cryptocurrency after several online encryption platforms have started offering binary options, difference contracts and Forex contracts where crypto currency was the underlying asset. Investors could bet on the outcome of a cryptocurrency without owning any cryptocurrency itself.
Although cryptocurrency derivatives are not included in the MiFID 2 regulation list, the AMF concludes that “a cash-settled cryptocurrency contract can be qualified as a derivative, irrespective of the legal qualification of a bank. cryptocurrency “.
Online trading platforms offering cryptocurrency derivatives must be regulated under MiFID2 and cleared under EMIR (European Market Infrastructure Regulation). Cryptocurrency derivatives also fall under the Sapin 2 anti-corruption law, according to the AMF press release.
Bloomberg writes that Plus500 Ltd. companies and IG Group Holdings Plc. have offered such cryptocurrency derivatives. Kelsey Traynor, a spokesperson for Plus500, told Bloomberg that all of the company’s CFDs are in compliance with the AMF framework.
In December 2017, France authorized financial companies and banks to exchange unlisted securities on Blockchain platforms in order to promote France’s reputation as a fintech hub.
The Minister of the Economy, Bruno Le Maire, appointed in January this year Jean-Pierre Landau, or “Mr. Bitcoin”, at the head of a working group on cryptocurrency aimed at preventing criminal activities to crypto.