The French stock market regulator Autorité des marchés financiers (AMF) issued a statement stating that financial products based on crypto-currencies should be regulated as derivatives, in accordance with the new financial reforms of the European Union in January of the year 2018.
Since derivatives can not be legally permitted in electronic form, AMF also states that online advertising for crypto currency is not allowed.
AMF refers to the new version of the EU Financial Markets Directive (MiFID 2), which defines financial instruments that require regulation, such as options, futures, swaps or forwards, and a list of relevant underlying assets.
AMF began the study of the legal definition of the Crypto currency as a derivative instrument and the underlying asset after several online platforms selling digital currency began offering binary options, CFDs and forex contracts where the main source is crypto currency. Investors could bet on the result of the crypto currency, not owning the crypto currency itself.
Although the Cyrillo currency derivatives are not included in the list of MiFID 2 rules, the AMF statement concludes that "an estimated cash and cash payment contract can be qualified as a derivative, regardless of the legal qualification of the crypto currency."
Online exchanges offering crypto-currency derivatives should be regulated in accordance with MiFID2 and act within the framework of the European Market Infrastructure Regulation (EMIR). According to AMF, such crypto-currencies also fall under the the jurisdiction of the French anti-corruption law.
Author: Olga Novikova, Analyst Freedman Club Crypto News
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