French financial regulator bans advertising of cryptocurrency contracts

French financial regulator bans advertising of cryptocurrency contracts

Based on a new anti-corruption law adopted last year, it is prohibited in France to advertise, promote or otherwise promote the conclusion of cryptocurrency contracts that pose risks. Such contracts include CFDs, futures, options and other complex financial products.

This is due to the fact that the regulator came to the conclusion that such contracts are cryptocurrency derivatives, that is, contracts under which the parties receive the right or undertake an obligation to perform certain actions in relation to the underlying asset, only in the case of cryptocurrency, such underlying asset is not shares, but bitcoin and other types of cryptocurrencies.

Derivatives are regulated by relevant legislation, which provides requirements for authorization, business rules and reporting obligations. In addition, such legislation prohibits the advertising of risky financial contracts.

By classifying contracts, the regulator Autorité des marchés financiers (AMF) has found a way to regulate them based on existing legislation.

Online exchanges offering cryptocurrency derivatives must now be regulated in accordance with MiFID2 and operate within the framework of the European Market Infrastructure Regulation (EMIR). According to the AMF, such cryptocurrencies are also subject to the jurisdiction of the French anti-corruption law.

According to https://www.trustnodes.com

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