News: French market regulator: norms for cryptocurrency derivatives

Autorite des Marches Financiers recently reported that Internet platforms that provide the opportunity to purchase cryptocurrency derivatives are subject to the EU MiFID II directive, and therefore will have to follow and comply with the provisions specified in the directive. Such start-ups, platforms, portals and resources will have to prepare and submit reports, fulfill AML-requirements, etc.

Moreover, this solution limits marketing opportunities, instruments for advertising campaign of cryptocurrency derivatives.

Representatives of AMF note that: "Recent cryptocurrency "boom" has become a kind of incentive for online trading resources. They offer binary options, contracts for difference and other derivatives connected with crypto-conversion, for example, bitcoin. The foregoing prompted the regulator to analyze the products offered by the companies. Plus500 Ltd. and IG Group Holdings Plc. were under the analysis".

Kelsey Traynor, PR specialist, stated on behalf of Plus500 that each contract for difference of the company, including each based on cryptocurrency, correspond to the structure established by AMF. Representatives of IG Group did not comment on this situation.

France is the last country to tighten the measures applied to cryptocurrencies and assets similar to derivatives that are in demand among buyer. The European Securities and Markets Authority, which standards operate and apply in 28 states, may impose restrictions on the use of products. The authority recently stated that it was considering the issue on banning marketing, distribution and sale of products to retail investors.

In turn, Great Britain also does not want to stand aside. Representatives of the authorities made a statement that they are carrying out activities to study the risks and benefits of transactions with cryptocurrency in order to consider the issue of regulating new technology.