The French Regulator says No online ads are derivatives of Crypto

2018 22 February at 23:10 GMT | updated 22 Feb 2018 23:11 GMT
The French stock market regulator published a statement on cryptocurrencies-related derivatives on Thursday, which includes curb on advertising such products.
In its statement, L Autorite de marches financiers (AMF) said that the trading platform should not be allowed cryptocurrency market derivative products in electronic form, in accordance with the requirements that cover derivatives in a broader sense. The publication was preceded by a multi-month review process, according to AIF.
The Agency said:
"The AiF concludes that the monetary settlement under the cryptocurrency agreement can be qualified as derivatives, regardless of the legal qualification of the cryptocurrency. As a result, online platforms that offer cryptocurrency derivatives fall within the scope of IFRS 2 and therefore must comply with authorization, conduct business rules, and Emir trade mandatory reporting to the repository. First of all, these products are subject to the provisions of Sapin 2 Law, and in particular the prohibition of advertising some financial agreements."
The European Union's financial instrument markets (mifid II) is an update of previous legislation to provide greater transparency on asset classes in the name of protecting investors. The initiative came into force in January. 3.
The letter to the AIF is the latest from the Agency on the topic of cryptocurrencies, the coming months after its first weighed in primary coin auctions (ICOS). In October, the Agency launched an ICO-oriented initiative called the Universal node in the ICO research network (unicorn).
Efforts, according to statements, at the time, were directed at "offering these carriers project personnel, allowing the development of their activities and providing protection to entities and investors wishing to participate."
Other regulatory bodies within the EU is considering the issue of derivative crypto as well.
The European securities and markets organization (esma) is investigating if such treaties comply with Mythid rules, and announced in January that they are seeking public opinion on potential changes to the rules.
Bitcoin and French flag images through the system
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Disclaimer: this article should not be taken as, and is not intended to provide investment advice. Please conduct your own thorough research before investing in any cryptocurrency.