The French regulator has banned the advertisement of cryptocurrency derivatives

The French regulator has banned the advertisement of cryptocurrency derivatives

The stock market regulator of France has published on Thursday a resolution about cryptocurrency derivatives, which includes the restriction on advertising such products.

In his statement, L Autorite Des Marches Financiers (AMF) announced that trading platforms are not allowed to advertise products on the basis of cryptocurrency in accordance with the rules that cover work with derivative tools. According to the publication, AMF was engaged in this question about a month before issued a final verdict.

The AMF concluded that cryptocurrency contracts based on cash can qualify as a derivative, regardless of the legal assessment of cryptocurrency. As a result, online platform offering the trading of derivatives cryptocurrencies fall under the scope of MiFID 2 and therefore must comply with all regulations for these types of products, including compliance with business rules, reporting, EMIR trade repository, etc. First of all, these products are subject to the provisions of the Sapin law 2 and, in particular, the ban on advertising of certain financial contracts.

The EU Directive on markets in financial instruments (MiFID II) is an update of previous legislation, with the aim of providing greater transparency in relation to asset classes to protect investors. The initiative entered into force 3 Jan.

Earlier, in October, the Agency launched an initiative that focuses on ICO, called the Universal Node to the ICO Research Network (UNICORN).

The purpose of the initiative was to provide “all the players some sort of framework that would allow them to develop their products, but would ensure the protection of investors.”

Other regulatory authorities in the EU are also engaged in the study of cryptocurrency derivatives.

In particular, the European authority for securities and markets (ESMA) is investigating to determine whether those contracts and the rules of MiFID announced in November about a possible change in the rules.

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