France Suspends Unregulated Crypto Futures Trading
France is planning to track and penalize the crypto futures and derivative trading platforms. The measure was announced by the French Financial Market Watchdog’s Chief on 22 February 2018.
In an official press release, the Autorite des Marches Financiers (AMF) stated that the number of online trading platforms that launch binary options, Forex contracts and other derivatives networks increases significantly.
According to the AMF website, “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. Above all, these products are subject to the provisions of the Sapin 2 law, and notably the ban of advertisements for certain financial contracts.”.
Also, the AMF added that no advertising about financial contracts will be allowed in the future.
At least two French derivatives brokers- Plus500 Ltd. and IG Group Holdings Plc. had stated a high increase in their earnings reports. They enjoyed the success largely due to the futures cryptocurrency and products coming from another source, related Bloomberg.
About the “Autorite des Marches Financiers”
The AMF is an independent public authority responsible for ensuring that savings invested in financial products are protected, that investors are provided with adequate information and supervising the orderly operation of markets.
Cracking down the cryptocurrency futures and derivatives trading platforms in France will cause a revolt among both developers and investors. We can’t know for sure what the other negative consequences will be. This project is still a draft. The future measures will be taken soon.