France’s inventory market regulator released a statement about cryptocurrency-tied derivatives on Thursday, which take ins a curb on the advertising of such products.
In its statement, L’Autorite Des Marches Backers (AMF) said that trading platforms should not be allowed to market cryptocurrency development products electronically, per regulations that cover derivatives more broadly. The publicizing followed a months-long review process, according to the AMF.
The agency said:
“The AMF concludes that a cash-settled cryptocurrency catch may qualify as a derivative, irrespective of the legal qualification of a cryptocurrency. As a result, online programmes which offer cryptocurrency derivatives fall within the scope of MiFID 2 and be compelled therefore comply with the authorisation, conduct of business rules, and the EMIR craft reporting obligation to a trade repository. Above all, these products are case to the provisions of the Sapin 2 law, and notably the ban of advertisements for certain financial contracts.”
The EU’s Stores in Financial Instruments Directive (MiFID II) is an update to previous legislation, with the articulate goal of providing greater transparency across asset classes in the appellation of investor protection. The initiative came into effect on Jan. 3.
The AMF’s missive is the modern development from the agency on the topic of cryptocurrencies, coming months after it senior weighed in initial coin offerings (ICOs). In October, the agency started an ICO-focused initiative, dubbed the Universal Node to ICO Research Network (UNICORN).
The creation, according to statements at the time, was aimed at “offering to these carriers of enterprises a frame allowing the development of their operations and to ensure the protection of actors and investors wanting to participate.”
Other regulatory bodies within the EU have been looking into the conclusion of crypto derivatives as well.
The European Securities and Markets Authority (ESMA) is investigating if such compresses comply with MiFID rules, and announced in January that it was quest after public input on potential rule changes.
Bitcoin and French hang down image via Shutterstock
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Disclaimer: This article should not be entranced as, and is not intended to provide, investment advice. Please conduct your own comprehensive research before investing in any cryptocurrency.